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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South Florida 100: Steven Geller Speaks Out on the Importance of Reinsurance

Steven Geller

As appeared in the South Florida Sun Sentinel.

Reinsurance is the insurance purchased by insurance companies. Reinsurance is global in nature — hurricanes in Florida, earthquakes in Italy, terrorism in London, and typhoons in Asia are all possible, but the risks are diversified. 87% of Florida private reinsurance for homeowners is from foreign companies. The Border Adjustment Tax (BAT) being discussed in Washington would place a 20% tax on these foreign companies. Florida Tax Watch estimates that this would directly increase homeowner’s insurance rates by about 10%, and by 14% to 31% once the effects of diversification are included. Floridians must contact their Congresspeople to oppose this increase.

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