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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Thursday
Oct192017

CCIR Responds to Speaker Paul Ryan's Statement on Corporate Inversions

WASHINGTON, DC (October 19, 2017) – Today the Coalition for Competitive Insurance Rates (CCIR), the leading voice for continued and increased competition within the insurance industry, released the following statement in response to Speaker Ryan’s statement on corporate inversions:

Speaker Ryan is correct that inversions are caused by a US tax code that makes US companies noncompetitive. Corporate transactions without economic substance, including abusive “inversions,” are not productive.

While Congress has the tools to change the US tax attributes of merger transactions through tax reform or tax cuts, it is ill-advised public policy to hike US taxes on an entirely unrelated form of transaction – cross border risk transfer.

Congress should not let the news of one inversion divert them from the substance of tax reform or distort the debate on what tax hikes will most harm consumers. Rather, policymakers should avoid counterproductive measures that would impede the ability of the global reinsurance markets to handle the unique property and liability exposures of the US – the world’s largest economy with the world’s largest natural disaster insured loss values. 

Global reinsurers continue to disclose payments estimated for Hurricanes Harvey, Irma and Maria that are reaching $30 billion.  Global reinsurers have announced two dollars in losses for every one dollar of US insurers.  As with past large natural disasters, it is expected that global reinsurers will pay more than 50% of the US losses.

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