Evan G. Greenberg, chairman and CEO of Chubb Ltd., on Thursday renewed Capitol Hill for a public-private partnership for pandemic risk, saying such a program would reduce the economic blow of a future pandemic.
Mr. Greenberg's comments came when he testified at a hearing by the US Senate Banking Committee's subcommittee on securities, insurance and investment to examine the framework for dealing with future pandemic risk. risk of pandemic tail ”would provide an“ affordable, efficient liquidity backstop for small businesses and a market-based program for larger companies, ”says Greenberg.
Robert Hartwig, clinical associate professor and director of the Risk and Uncertainty Management Center at the University of South Carolina at Columbia, questioned whether such a program was needed.
"Given all the pandemic insurance frameworks under consideration developed during the very early months of the pandemic, it is worth considering their future benefits given the retrospective and nearly 1
The government's relief through fiscal and monetary stimulus succeeded in providing "very comprehensive assistance to consumers, businesses and entire industries," Hartwig said. Whether any of the proposed programs would lead to a "discernible superior result" for business or the economy as a whole is not clear, he said.
Robert Gordon, senior vice president, policy research and international, at the American Property Casualty Insurance Association, a trade group in the insurance industry, agreed.
"Although the United States has been destroyed by the ongoing pandemic, our country has also been able to recover much faster than many other regions around the world," Gordon said in his virtual testimony.
But lawmakers questioned whether Congress would do anything but wait for the next pandemic to strike. The government's response to the pandemic in the form of fiscal and monetary stimulus was made "on the fly," said Senator Robert Menendez, (D-New Jersey), who chaired the hearing.
"I'm not sure it would not. It would not have been more effective if we had prepared for the opportunity and thought about what it could mean," said Senator Menendez. Senator Menendez said of the 8 million commercial insurance companies that included business interruption coverage, 83% had an exemption for virus or pandemic claims, according to National Association of Insurance Commissioners data.
Others testified that a pandemic risk-sharing mechanism was critical
Parts of the pandemic risk are insurable but not without significant government support, said Martin South, president, US and Canada division of Marsh LLC, in virtual testimony during the hearing.
"Property and liability insurance is very limited their ability to respond to pandemic-related losses, South said.
"The magnitude of global economic losses, difficult "The ability to predict what measures governments will take to contain communicable diseases and the potential for rapid changes in consumer demand will make the pandemic risk impossible for insurers and reinsurers to take without government support," South said.