Florida Gov. Rick Scott has voiced his opposition tolegislation that would deny tax deductions for reinsurance premiumspaid to foreign-based affiliates of domestic insurers.
|He says that the legislation, which is included in PresidentObama's current budget recommendations, may “have a disastrousimpact on Florida's families and businesses” by increasinginsurance costs and shrinking insurance capacity.
|In a letter to Congressman Vern Buchanan (R-FL), Scott wrote thatbills H.R. 2054 and S. 991 would cause consumer insurance bills torise by more than $817 million, for commercial multi-perilinsurance to increase by 12.6 percent, or $264 million annually,and the price of homeowner's multi=peril insurance to increase by4.2 percent or $266 million a year.
|International insurance companies are expected to cover nearly50 percent of the $19 billion to $25 billion of losses caused byHurricane Sandy, says advocacy Group Coalition for CompetitiveInsurance Rates (CCIR).
|“Florida needs this global reinsurance capacity,” saidScott, “and the reinsurance tax included in the president'sproposal and the Neal-Pascrell-Menendez bill would damage ourstate's economic recovery by increasing insurance costs for ourpolicyholders.”
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