Biden Tax Plan Hits Global Reinsurance
The bills for the Biden administration’s multi-trillion dollar American Jobs and American Families plans are expected to be footed by additional revenues generated by The Made in America Tax Plan [1]. A headline feature of the plan raises income taxes on the highest-earning American families, the 1.8 percent of households [2] earning over $400,000 per year. Taxes on the remaining 98.2 percent middle class and poor American families would be unaffected right? Wrong. A poorly-understood feature of the Biden plan penalizes the global reinsurance industry, which would make property insurance more expensive, especially for homes and businesses in Florida, where premiums are already rising steeply. The plan functionally introduces what may be viewed as a “hurricane tax:” raising corporate taxes and introducing new rules impacts international financial transactions, which increases the cost of reinsurance and adversely impacts primary insurer
Too Little, Too Late? Breaking Down Florida’s Latest Property Insurance Reforms
A bill passed by the Florida Legislature to address the state’s property insurance crisis has created optimism among some stakeholders, while others say it will not reduce rates over the next 18 to 24 months or stop the state’s out-of-control claims litigation.
This year’s effort to pass property insurance reforms came down to the wire with the passage of Senate Bill 76 on the last day of session. The bill attempts to solve some of the issues plaguing the state’s homeowners insurance market in which insurers lost more than $1.5 billion last year. Consumers are facing double-digit rate increases, restricted coverage, or having to turn to the state’s insurer of last resort, Citizens Property Insurance.
The idea is straight-forward. Reduce the opportunity and incentive for contractors and attorneys to pursue potentially unnecessary claims and lawsuits.