NEW YORK (April 15, 2013) – RIMS, the risk management society ™, delivered an official letter to the House Ways and Means Committee’s International Tax Reform Working Group to voice the Society’s disagreement with the Administration’s Proposed 2014 Budget that includes an effort to eliminate the tax deduction for reinsurance premiums ceded by domestic insurers to their foreign affiliates.
The letter, submitted by RIMS President John Phelps, includes:
· background information on the proposed budget item;
· an exploration of the impact the item would have on consumers from the decreased availability and increased prices of insurance; and
· information highlighting the item’s propensity to violate the United States’ commitment to international businesses.
In the letter, Mr. Phelps states, “The Administration’s Proposed 2014 Budget’s effort to eliminate the tax deduction for reinsurance premiums ceded by domestic insurers to foreign affiliates would have a chilling effect on the use of foreign reinsurance. As a result, the availability of coverage would be reduced and costs for consumers would increase significantly, particularly in urban areas subject to terrorism risk and areas prone to natural disasters.”
To read the full letter, click here.
For more information about RIMS External Affairs initiatives or about the RIMS International Committee, visit www.RIMS.org.