House Committee Holds Hearing on Pandemic Risk Insurance
The House Committee on Financial Services Committee's Subcommittee on Housing, Community Development, and Insurance held a hearing on November 19 entitled "Insuring against a Pandemic: Challenges and Solutions for Policyholders and Insurers." At the hearing, the Subcommittee discussed legislative proposals to resolve issues related to pandemic-related business interruption insurance, such as Rep. Carolyn Maloney's (D-NY) H.R.7011, the Pandemic Risk Insurance Act (PRIA). The committee heard witness testimony from small businesses, insurance brokers, and representatives of commercial insurers.
PRIA (H.R.7011) would create a Pandemic Risk Reinsurance Program that would establish a system of shared public and private compensation for business interruption losses resulting from future pandemics or public health emergencies. PRIA is modeled on the successful Terrorism Risk Insurance Act (TRIA), which has been integral in encouraging insurers to cover acts of terrorism, which is similarly challenging to insure.
Many businesses that currently hold business interruption insurance have learned that their policies do not cover government-ordered business shutdowns caused by a national emergency or viral pandemics, such as the current COVID-19 crisis. This lack of coverage has had an extremely negative impact on the businesses under the assumption that the insurance policies they have been paying premiums on for years would support them during this crisis.
Impact on General Dentistry: AGD supports efforts in Congress to reform the business interruption insurance market, such as H.R.7011. Reforms that build on successful models such as TRIA were specific asks in an Organized Dentistry Coalition (ODC) letter led by AGD. AGD is advocating for these broader reforms to be included in the next COVID-19 relief bill, alongside changes that offer relief to current business interruption insurance policyholders.
PRIA (H.R.7011) would create a Pandemic Risk Reinsurance Program that would establish a system of shared public and private compensation for business interruption losses resulting from future pandemics or public health emergencies. PRIA is modeled on the successful Terrorism Risk Insurance Act (TRIA), which has been integral in encouraging insurers to cover acts of terrorism, which is similarly challenging to insure.
Many businesses that currently hold business interruption insurance have learned that their policies do not cover government-ordered business shutdowns caused by a national emergency or viral pandemics, such as the current COVID-19 crisis. This lack of coverage has had an extremely negative impact on the businesses under the assumption that the insurance policies they have been paying premiums on for years would support them during this crisis.
Impact on General Dentistry: AGD supports efforts in Congress to reform the business interruption insurance market, such as H.R.7011. Reforms that build on successful models such as TRIA were specific asks in an Organized Dentistry Coalition (ODC) letter led by AGD. AGD is advocating for these broader reforms to be included in the next COVID-19 relief bill, alongside changes that offer relief to current business interruption insurance policyholders.