An Overview of Insurance Companies Sector in the U.K
A company may cover all the loss or some part of it depending upon the policy.
This profit Shift to a high-tax jurisdiction could as well be as a consequence of tax advantages. In the high-tax jurisdiction, deductibility is not allowed since payments are not considered as expenses for tax. The expense is considered extremely high while transfer pricing becomes paramount. Tax authorities usually reason that insurance premiums normally paid to insurance companies are per nondeductible since inter-company transfers are not included in expenses in a fiscal sense.
General insurance plans are also available to cover motor insurance, home insurance, travel insurance and health insurance. Due to the growing demand for insurance, more and more insurance companies are now emerging insurance sector all over the world. With the opening up of the economy, several international leaders in the insurance sector are trying to venture into the insurance industry.
Andrews, E., L., February 14, 2006, US royalty plan to give a windfall to oil companies. New York: New York Times. Web.
Danielsson, J., & Keating C., 2011, valuing insurers’ liabilities during crises: What EU policy markers should not do. Web.
Doherty, N., A., & Smith, C., W., 2003, Corporate insurance strategy: The case of British Petroleum. In Chew, D., H., & Stern, J., M., 2003, The revolution of corporate finance, 4th ed. New Jersey: Wiley-Blackwell Publishers. pp. 403 – 413.