CBI’s Comments to FACI on Pandemic Risk Insurance
The Federal Advisory Committee on Insurance will discuss proposed pandemic insurance programs later this month.
The Federal Advisory Committee on Insurance will hold its next meeting on September 29. The agenda includes a report out from the COVID-19 subcommittee “which will discuss their ongoing work related to the insurance sector’s preparation for future pandemics and other emergencies.”
The Centers for Better Insurance has submitted the attached comments in aid of that discussion. CBI strongly urges stakeholders to focus their efforts on first understanding the financial protections:
· Businesses, nonprofits, local governments need to manage their pandemic risks; and
· Employees, customers, families, and communities need to endure and recover from the economic consequences of future pandemics.
Once we have a developed practical map of the pandemic risk landscape and identified current gaps in protection, then we can turn our attention to who will administer the programs necessary to plug those gaps and finance the resulting costs.
CBI’s comments further explain how the proposed Pandemic Risk Insurance Act appears to be approaching the challenge of future pandemic risk from the opposite direction with potentially disastrous outcomes for small businesses, nonprofits, and local governments.