A public hearing was held for Bill 306-36, which would provide an incentive for captive insurance agencies to the island.
PNC’s Althea Engman has more…
Bill 306-36, it would establish a qualifying certificate program which incentives captive insurance companies who underwrite insurance risks outside of Guam to receive tax rebates.
Those in attendance included the Guam chamber of commerce and Guam Economic Development Authority who spoke about how other places have benefited from this action.
According to Catherine Castro from the Guam Chamber of Commerce, the federated state of micronesia who have 23 captive insurance companies have received 642 millions in premium payments and exceed 1.27 billion dollars in assets.
Castro said, “The potential for this industry to generate income is tremendous, bill 306 addresses administrative burdens that deter off island companies from considering Guam.”
Castro added, “In order for Guam to be considered we need to provide incentives for companies to make it attractive and worthwhile, it is important to note that the current bill poses no threats to the current insurance industry on Guam and clearly doesn’t insure risks on Guam.”
Lawmakers had their own questions and concerns about the bill and the benefits it could provide for the island of Guam, but were in support of this action.
Senator Telo Taitague was concerned that Revenue and Tax was not in attendance – to show support of their testimony and asked chairman clynt ridgell to request for their testimony to be provided.
While Senator Joanne Brown, had questions on what can be added and changed from the previous legislation from 25 years ago and how Guam can now benefit from it.
Brown said, “What are the key points we can address to avoid and to make it more attractive to want to have , back then we were told the very things benefits you were talking about now and talk about the jurisdiction place that’s interesting to hear.”
Senator Joe San Agustin, the main sponsor of the bill, ended the public hearing by saying that bill 306 will allow Guam to have a more attractive captive insurance industry.
Additionally, GEDA have extended their help to make this possible once passed into law.
Reporting for PNC News
I’m Althea Engman