From Reactions:

Purchasing global reinsurance would be nearly impossible for US insurers if a proposed border adjustment tax is passed by Congress according to the RStreet Institute and the Pacific research Institute.

According to a joint study from the firms, Californians alone would face a $1.9bn increase in P&C insurance costs if such a tax is implemented.

“Many countries exempt financial services like reinsurance from their value added tax (VAT). But if Congress enacts a tax without doing so, the R Street-PRI study concludes that US insurers would essentially not be able to use international reinsurance any longer,” read the report.

The proposed border adjustment tax has been widely panned by the industry, with the Property Casualty Insurance Association which represents more than 1,000 insurers and reinsurers in the country coming out in direct opposition to such a tax.

While the tax has been proposed as part of a tax reform proposal put forth by the Trump administration, it has not been cemented into a bill as of yet.

In a tax centred speech given by House Speaker Paul Ryan, he did not mention the border adjustment tax, although he also did not state that it would be scrapped.

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