A provision in the Obama administration's fiscal 2014 budget proposal would scrap the tax deduction for reinsurance premiums ceded to insurers' foreign affiliates, a move that could result in higher prices for property/casualty insurance, including terrorism-risk insurance, according to the Risk and Insurance Management Society. "[T]he availability of coverage would be reduced and costs for [corporate] consumers would increase significantly, particularly in urban areas subject to terrorism risk and areas prone to natural disasters," RIMS President John Phelps wrote in a letter to lawmakers.

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