The German regulator BaFin has updated its guidance on the conduct of reinsurance business by US insurers in Germany under the provisions of the 2017 EU-US Covered Agreement (“Bilateral Agreement between the European Union and the United States of America on prudential measures regarding insurance and reinsurance”). An English language version has also been published, Link. BaFin expects that the declaration by the assuming reinsurer under Article 3(4)(f) of the Agreement that it will pay all final judgments obtained by a ceding insurer, wherever enforcement is sought, that have been declared enforceable in the territory where the judgment was obtained, will also be communicated to the German ceding insurer (and not just to BaFin) or will be embedded in reinsurance contracts.
