‘Legislation Impacts Reinsurers Around World’
“This pending legislation is not Bermuda-specific, but it impacts reinsurers around the world, including those in our market who make a critical contribution to US clients after catastrophes,” Premier and Minister of Finance David Burt said.
This weekend, the Wall Street Journal reported that, “Big U.S. property-casualty insurers succeeded in closing what they say is a loophole permitting rivals to rack up profits and move jobs to Bermuda, Switzerland and other low-tax locales, according to lobbyists for both sides.”
In response to a query about it, Premier Burt stated, “This pending legislation is not Bermuda-specific, but it impacts reinsurers around the world, including those in our market who make a critical contribution to US clients after catastrophes.
“Studies indicate Bermuda reinsurers will cover an estimated 30 percent of this fall’s losses from Hurricanes Harvey, Maria and Irma—underscoring the key role Bermuda plays in the supply of risk capacity to America.
“Indeed, over the past 20 years, our reinsurance industry has paid over $200 billion to US customers.
“This is significant, and any move that restricts or reduces the supply of reinsurance from hubs like Bermuda will negatively affect American households and businesses.
“Bermuda recently signed a Country-by-Country Competent Authority Agreement with the US Internal Revenue Service [IRS], further emphasising our jurisdiction is committed to transparency, cooperation and compliance with international tax authorities.”
There is a sense that Bermuda is fighting a rearguard action ….
Rear-guard action just like SSM..
“Indeed, over the past 20 years, our reinsurance industry has paid over $200 billion to US customers.”
So…what if Bermuda in a tit for tat situation were to have applied a 11% tax on all claims paid out of Bermuda to USA clients (BDA Govt keeps 1% and the insurors get to keep 10% to offset the tax they will be paying to the US)? That would leave us with $2 billion to pay off our debt and put our insurors on a more level playing field…all at the expense of the poor consumer. It can work both ways, you know! We don’t just have to CAVE to the almighty USA!
That ought to get Donald Trump booted out of the White House!