Proposed Tax Changes Will Raise Consumer Insurance Prices

ACI submitted a letter to Senator Baucus regarding proposed tax changes that would lead to higher consumer prices for homeowner insurance in the U.S.  The bill includes a protectionist provision that raises taxes on some U.S. subsidies with international affiliations, thereby affecting taxes on global capital from reinsurers.  Because reinsurance represents the financial backstop for insurance companies, limiting access to global capital means higher costs for insurance companies and it means higher prices for consumers.  The letter can be downloaded here.

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