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.

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Don’t tax foreign reinsurers: Report

By Will Koblensky

Taxing foreign reinsurers taking on risk from their US affiliates would reduce the supply of insurance, increase costs for clients and is particularly negative for the P&C market according to a report by economic consultancy, The Brattle Group. 

A drop in reinsurance supply is estimated at 13% nationwide or an aggregate decrease of $18.3 billion. This would lead to costs going up for consumers, Brattle said, by $5 billion annually.

The tax being considered by Congress is meant as a punitive measure and The Impact of Offshore Affiliate Reinsurance Tax Proposals on the US Insurance Market study found reinsurance structures are paramount in natural disaster coverage.

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