AM Best TV & Audio
Insurers Seek Federal Backstop to Pandemic Risk
Lawmakers are considering two proposals that address business interruption insurance related to COVID-19. AM BestTV and AM BestAudio report on stories from a number of sectors within the insurance industry.
- January 2021
Legislators are considering two federal pandemic risk proposals, as the business interruption exposure due to the coronavirus is larger than the private market can bear alone, industry watchers, including Jennifer Platt, vice president, federal operations, International Council of Shopping Centers, said.
Fewer cars on the road have led to increased speeding and higher auto claims severity, said Andrew Shockey, AVP, risk management, Philadelphia Insurance Cos.
Last year saw accelerating change in the property insurance industry, said Brian Sullivan, owner and editor, Risk Information Inc. Social justice and virtual claims were part of an “exciting” time.
Climate change is driving governments to look for alternative ways to pay for catastrophe losses, said Josh Darr, head of North America Peril Advisory, Guy Carpenter.
The Pandemic Risk Insurance Act would create a federal backstop for a public/private partnership for business interruption insurance, said U.S. Rep. Carolyn B. Maloney, D-N.Y.
Liability related to batteries can be particularly complex, said Rich Vicars of Jensen Hughes, and Ryan Pierce of the law firm of Reeves & Brightwell. Identifying the manufacturer of a defective device, for example, often requires microscopic investigation.
Businesses are frustrated with the lack of pandemic business interruption coverage, a risk so large the federal government needs to be involved, said Sean Kevelighan, CEO of the Insurance Information Institute.
Visit www.ambest.com/video to see new and archived video from AM BestTV
Pandemic Accelerates Digital Transformation
Industry professionals talk with AM BestAudio about how the coronavirus has forced insurers to improve information technology and their engagement with customers.
Tony Grosso, head of global marketing, EIS Group, discusses how outdated IT architectures have hindered insurers, but the global pandemic has forced them to step up their game.
Yoann Michaux, senior partner, enterprise strategy & iX Insurance lead at IBM, explains that insurers must recognize the need to better engage their customers, especially in the digital age.
Find AM BestAudio at www.ambest.com/ambaudio.