2012 will undoubtedly be a challenging year, but Guy Carpenter believes that growth opportunities exist - or can be created - for companies that have the fortitude to see and develop them. Below we examine Themes 6 through 10 of the 10 major themes that the (re)insurance sector will face in 2012. (Themes 1 through 5 were examined in a prior GC Capital Ideas post.)
Posts Tagged ‘Dodd-Frank’
Industry Issues and Trends: Regulatory Activity Remains a Central Focus, Part II: United States and Europe
While Solvency II remains very much on the radar of US insurance and reinsurance companies, another important regulatory initiative - the Neal Bill - may encounter hurdles following the recent political shifts in Washington. This legislation seeks to discourage companies from ceding ‘excessive’ portions of their US premiums to offshore affiliates to lower their tax burden. A revised version of the bill was also incorporated into the Obama Administration’s 2010 budget plan. However, prospects for the full bill’s passage diminished in the 2010 US midterm elections, when the Republican Party took control of the House of Representatives and eroded the Democratic majority in the Senate. As demonstrated by the recent extension of the Bush tax cuts, the Obama Administration has been compelled to compromise on its legislative agenda, and the shift in power could prevent the Neal Bill from passing into law.