PRIA — Rewarding Risk Concentration

Photo by JC Gellidon on Unsplash

First published June 12, 2020

The proposed Pandemic Risk Insurance Act (PRIA) leverages the backstop framework developed for the Terrorism Risk Insurance Act (TRIA).

In this video, the Centers for Better Insurance explores how the federal backstop proposed for PRIA would reward the concentration of pandemic risk into highly specialized insurance companies. Such risk-concentration techniques are already in widespread use to manage terrorism risk under TRIA.

Current videos in the Pandemic Risk Insurance Act series:

Episode 1: The Backstop

Episode 2: The Diversification Penalty

Episode 3: Reward for Risk Concentration