Multinational companies are seeking greater understanding of their global risk programs and how to achieve compliance with local regulations as they face enhanced scrutiny from governmental bodies, according to Praveen Sharma, Marsh Insurance Regulatory and Tax Practice Leader.
According to March, the global regulatory environment has evolved dramatically in recent years. Contributing events include the landmark Kvaerner case in the European Union; bilateral and multilateral agreements among regulators and tax authorities; and the expansion of operations coupled with their insurance needs to cover risks such as excess liability, crime, and directors & officers (D&O) more broadly and consistently.
March notes that a number of tax authorities have been reviewing global insurance arrangements to identify unpaid premium-related taxes. Further, many tax regimes have either introduced new rules or increased their premium-related tax rates.
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