Washington — Opponents of recently introduced U.S. House tax legislation say the bill, if enacted, will reduce critical U.S. insurance capacity and drive up prices for U.S. consumers.
The Coalition for Competitive Insurance Rates contends the bill, HR 6969 introduced by U.S. Rep. Richard Neal (D.-Mass.), will affect all foreign insurers that have U.S. subsidiaries, and that also provide insurance and reinsurance coverage to the United States. The coalition includes the Risk and Insurance Management Society, the Florida Consumer Action Network, the National Risk Retention Association, the Organization for International Investment, the European Insurance and Reinsurance Federation and the Association of Bermuda Insurers and Reinsurers.
"Without a competitive global reinsurance market, it would be even more difficult and expensive for South Carolina and other coastal state home and business owners to obtain insurance to protect them from hurricanes," says South Carolina Insurance Director Scott Richardson.
Detractors of the bill say it is an attempt to stymie foreign competition.
"This bill is an isolationist effort by a handful of very large, very profitable U.S. insurance corporations who intend to create a new barrier for their competitors so that they will benefit from a protected market,” says Bradley Kading, president of the Association of Bermuda Insurers and Reinsurers.
Source: The Coalition for Competitive Insurance Rates
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