From Business Insurance:

The insurance industry itself is divided on the issue.The discussion draft, which includes the reinsurance proposal among other tax changes, drew immediate fire from free-market groups and others.

“In order to make coverage available for big catastrophes — everything from earthquakes and hurricanes to crop failures to acts of terrorism — the U.S. market relies to a significant extent on insurance capacity provided by global companies,” R Street Institute Senior Fellow R.J. Lehmann said in a statement. “This protectionist scheme, long sought by a handful of large domestic insurance groups, would inevitably make the United States less attractive to global insurers and reinsurers, encouraging them to commit their capital elsewhere.”

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