Following the inclusion of a proposal in US President Obama's 2015 budget to disallow a tax deduction for certain reinsurance premiums paid to foreign affiliates, Insurance Europe has co-signed a letter to the US Congress from the Coalition for Competitive Insurance Rates opposing the proposal.
Insurance Europe has always opposed such isolationist and discriminatory proposals, which have been put forward in previous budgets. The proposal would have a negative effect on US consumers, as it could increase the cost of cover by $11-13bn a year. It could also reduce the reinsurance capacity in the US market by 20%. This would particularly affect the market for natural catastrophe cover, in which international (re)insurers play an essential role in many US states.
Source Noodls
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