The Roundtable and Business Continuity Coalition Call for Public-Private Pandemic Risk Insurance Solution
February 23, 2022
The Real Estate Roundtable, as a member of the Business Continuity Coalition (BCC), urged policy policymakers this week to develop a public-private backstop program for pandemic risk insurance, which would protect the economy from future pandemics and other national emergencies that cause business interruptions. The BCC includes over 50 associations and companies that represent approximately 70 million workers in dozens of industries.
BCC supports a pandemic risk insurance program that would be similar to the Terrorism Risk Insurance Act (TRIA) program enacted the year following the 9/11 attacks. BCC has put forward our own recommended proposal, and also supports the Pandemic Risk Insurance Act of 2021 (PRIA, H.R. 5823).
TRIA and PRIA both include a a broad federal reinsurance backstop and a general “make-available” requirement on insurers that is applicable to all relevant lines of commercial property and casualty lines of insurance.
BCC’s preferred proposal includes important differences from TRIA -- chiefly to respond to insurers’ expressed concerns about aggregation of risk and to ensure program continuity. BCC also supports including a parametric revenue-replacement benefit.
For more details, see the Feb. 23 BCC comment letter.
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