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Offshore insurers on alert over Trumponomics

Bermuda and other offshore insurance centres are wary of President Donald Trump’s “America first” economic agenda, which includes reducing the corporate tax rate.

AM Best says a lower company tax will benefit US-based (re)insurers, but foreign counterparts may suffer.

“Regulatory risk, a common element of companies’ risk registers, has been transitioning from green to red as a potential concern,” the ratings agency says in a new report.

“With the new US administration in place, lowering the corporate tax rate and taxes on imports remain on the table because they were among [President Trump’s] campaign promises, intended to bring business back onshore to stimulate the US economy.

AM Best says “Bermuda and other offshore domiciles could be negatively impacted and they have cited the risks of less capacity and higher rates to US consumers in their opposition”.