American businesses and consumers rely on the availability of insurance services provided at competitive rates. The Coalition for Competitive Insurance Rates is made up of business organizations, consumer advocacy groups, insurers and their associations advocating for continued and increased competition within the insurance industry.

 

 

A proposal in President Barack Obama’s FY 2015 budget seeks to deny a tax deduction for reinsurance premiums paid to foreign affiliates by domestic insurers. The proposal closely resembles legislation introduced in Congresses by US Representatives Richard Neal (D-MA) and Bill Pascrell (D-NJ) and Senator Robert Menendez (D-NJ) that would drastically raise insurance rates across the country. The President’s budget proposal and the Neal-Pascrell-Menendez legislation would impose an unnecessary and costly tariff on the companies that help spread insurance risks globally. This ability to spread risk has been especially beneficial for consumers and businesses in areas subject to hurricanes, earthquakes, crop failures and other forms of disaster.

More than 100 independent experts, state government officials, business owners, and associations have publicly filed opposition letters to these tax proposals. Additionally, the Brattle Group, an economic research firm, has published a study pointing out the potential economic consequences of the legislation.

 

 


Thursday
Sep182014

GC Capital Ideas: Capital Optimization: Using Internal Reinsurance for Group Capital Management

Increased capital efficiency remains at the forefront of (re)insurers’ strategies - owing largely to the pending introduction of the Solvency II regime, rating agency capital requirements and the continued pressure around shareholder expectations.

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Monday
Sep152014

Nevada Insurance Commissioner Among Growing Opposition to Harmful Reinsurance Tax Proposal

In a recent letter to Sen. Majority Leader Harry Reid (D-NV), Nevada Insurance Commissioner Scott Kipper joined a growing chorus of more than 100 elected officials in requesting opposition to legislation that would deny a tax deduction for certain reinsurance premiums paid to foreign-based affiliates by domestic insurers.

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Friday
Sep052014

The Hill: Op-Ed: US tax system is a global punchline

The jokes about Warren Buffett’s whopper of an inversion deal write themselves. What is not so funny is how Washington has allowed America’s tax system – with a rate 10 percentage points higher than the global average – to go neglected for decades while we continue to lose ground in the global race for investment and jobs.

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Tuesday
Jun032014

Royal Gazette: Richards and RIMS president differ on Neal bill’s prospects

Captive insurance professionals yesterday heard Finance Minister Bob Richards predict a rise in US interest rates in the near term during a panel discussion at the Bermuda Captive Conference. But he was challenged by one panelist when he suggested that controversial proposed US legislation that could impact Bermuda’s insurance industry would gain no traction in the US legislature.

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Friday
Feb282014

Senator Pat Toomey: Reinsurance Tax Plan Harmful to Economy, Jobs

Senator Max Baucus recently released tax reform discussion drafts detailing proposed changes to America's international tax regime, accounting methods, and cost recovery rules. These are important topics and I am grateful that Senator Baucus released these drafts before departing the Senate to serve as America's ambassador to China. Unfortunately, there are multiple provisions in these discussion drafts that I believe would impede economic growth and move tax policy backwards.

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