RIMS Letter to House Ways & Means Committee Denounces Reinsurance Tax Penalty

April 15, 2013

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.

For more information, contact:

Josh Salter, Director of Communications, (212) 655-6059 or JSalter@rims.org

About RIMS

As the preeminent organization dedicated to promoting the profession of risk management, RIMS, the risk management society®, is a global not-for-profit organization representing more than 3,500 industrial, service, nonprofit, charitable and government entities throughout the world. Founded in 1950, RIMS is committed to advancing risk management capabilities for organizational success, bringing networking, professional development and education opportunities to its membership of more than 10,000 risk management professionals who are located in more than 60 countries. For more information on RIMS, visit www.RIMS.org. 

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