Dear friend,
I'd like to make it clear from the outset that I love the good 'ol US of A. Fred & Ginger, Fifth Avenue, Robert Lowell, Dry Martinis... just part of the rich cultural tapestry that is Americana. And let's not forget the great poet John Berryman, who was born 100 years ago (a little obsession of mine).
What often bugs me about the supposed home of the free market, however, is how rigidly protectionist it remains in some areas. And one of these areas is reinsurance, where for years now European reinsurers have been complaining about the requirement to post 100% collateral for their potential liabilities in the US- a requirement their domestic competitors do not face.
This is blatant protectionism and I can't really see any useful justification for it.
Embarrassingly, France and Portugal also have collateral requirements for foreign reinsurers, so Europe is hardly blameless either.
This is an issue that has been debated for years now, and has surfaced once again because the US once again appears not to be playing ball, with its reluctance to include financial services in the Transatlantic Trade and Investment Partnership (TTIP) agreement, currently being negotiated between Europe and the States.
This doesn't bode well, and makes me gloomy for the prospects of any deal being sealed by the end of the year via other routes, as is hoped by those in behind the scenes talks.
So come on, sort yourselves out and abandon this outdated and senseless requirement please - it's an issue that should have been sorted years ago and if we're still talking about in years to come it will be ridiculous. Protectionism is a dirty word.
Marcus Alcock,
Editor, InsuranceERM