Rep. Maloney Joins with Industry and Trade Association Leaders to Introduce the Pandemic Risk Insurance Act
NEW YORK NY — Congresswoman Carolyn B. Maloney (D-NY), senior member of the House Financial Services Committee, today joined with various stakeholders to introduce H.R. 7011, the Pandemic Risk Insurance Act of 2020 (PRIA). This legislation will create the Pandemic Risk Reinsurance Program, a system of shared public and private compensation for business interruption losses resulting from future pandemics or public health emergencies.
The Pandemic Risk Insurance Act would be an important step in Congress’s prevention efforts against economic losses from future pandemics by both requiring insurance companies to offer business interruption insurance policies that cover pandemics, and creating a Pandemic Risk Reinsurance Program to ensure that there is sufficient capacity to cover these losses and protect our economy in anticipation of a resurgence of COVID-19 and future pandemics. Like the Terrorism Risk Insurance Act (TRIA), the federal government would serve as a backstop to maintain marketplace stability and to share the burden alongside private industry.
“Millions of small businesses, nonprofits, mom-and-pop shops, retailers, and other businesses are being left out in cold and will never be able to financially recover from the coronavirus crisis because their businesses interruption insurance excludes pandemics,” said Congresswoman Maloney. “We cannot allow this to happen again. These employers and their employees need to know that they will be protected from future pandemics, which is why I am introducing the Pandemic Risk Insurance Act.”
"Nonprofits in New York have lost countless millions of dollars in revenue, thousands of staff, and even shut down due to the COVID-19 pandemic, and nonprofits are consistently denied insurance claims for these losses. None of us know when this pandemic will end or when another will begin,” said Chai Jindasurat, Policy Director at Nonprofit New York, an association of over 1,500 nonprofits. “Congresswoman Maloney’s Pandemic Risk Insurance Act is a proactive, market-friendly insurance solution to fund and cover future business losses that will create much-needed stability for our economy and our communities."
“9/11 exposed the need for terrorism risk insurance, and since the impact of coronavirus on the travel industry has been nine times that of 9/11, it is very sensible to offer a similar backstop for pandemics,”said Tori Emerson Barnes, U.S. Travel Association Executive Vice President for Public Affairs and Policy. “This measure will go a long way in giving businesses the confidence they need to reopen, which will be vital to a rapid, robust and sustained economic recovery. Congresswoman Maloney and the other co-sponsors of PRIA deserve enormous credit for initiating this crucial step to restore American jobs and put the country back on the road to prosperity.”
“Congress must take swift action and begin contemplating a solution to provide all businesses protection against future pandemic risks,” said Leon Buck, National Retail Federation Vice President for Government Relations, Banking and Financial Services. “The development of a public-private partnership to address this risk will provide certainty for businesses and organizations of all sizes and will ensure that we can meet future pandemic events with greater reliance. Not every pandemic will have worldwide impact, but when and where one occurs it is likely to result in a nearly total cessation of business. This legislation is the cornerstone of a proactive approach in managing the risk and impact of a pandemic or epidemic in the future.”
“The Pandemic Risk Insurance Act offers a critical solution for associations and others devastated by event cancellations, slashed reserves and sharp membership declines amid COVID-19,” said Susan Robertson, CAE; American Society of Association Executives President and CEO. “ASAE thanks and applauds Congresswoman Maloney for introducing this important bill, which will no doubt help provide America’s 62,000 associations the security they need to fully reignite our community’s far-reaching economic impact through industry-focused conferences, workforce development and educational programming, among other critical services.”
In addition to those named above, PRIA is endorsed by; Marsh & McLennan Companies, Retail Industry Leaders Association, The Council of Insurance Agents & Brokers, The Travel Technology Association, the National Multifamily Housing Council, Partnership for New York City, International Council of Shopping Centers, National Apartment Association, International Franchise Association, RIMS, the Risk Management Society, CCIM Institute, Association of Woodworking and Furnishing Suppliers, Association of Marina Industries, School Social Work Association of America, National Waste & Recycling Association, National Commission on Correctional Healthcare, National Career Development Association, Tile Council of North America, Modular Building Institute, American Jail Association, World Floor Covering Association, Young Audiences Arts for Learning, American Case Management Association, The Minerals, Metals & Materials Society, Institute of Scrap Recycling Industries, Institute of Real Estate Management, International Health, Racquet & Sportsclub Association, and National Wooden Pallet & Container Association.
Bill text can be found here.
A section-by-section summary can be found here.
Video of today’s press conference can be viewed here.