Rep. Emanuel Cleaver, D-Missouri, chairman of the subcommittee on financial services for housing, community development and insurance on Wednesday, reduced the likelihood of a government backstop for pandemic risk.
“It will be very difficult for me to get my colleagues on the other side to realize that there must be a government stop for another insurance issue. I do not even want to mildly suggest that it is something we will be able to train, says Cleaver.
Mr. Cleaver spoke on the second day of a virtual event, "Addressing the Pandemic Risk Gap," hosted by the Organization for Economic Co-operation and Development, with the support of Marsh & McLennan Cos. Inc.
The reality is that most insurers cannot afford the business losses of the pandemic, he said.
“Even if they could, most business owners might not be able to afford it because premiums would be high. In fact, they can be prohibitively high, "says Cleaver.
Insurance cancellation insurance usually explicitly rules out pandemics, he said.
" Tragically, I have businesses in my Kansas City, Missouri and subway conventions that thought they were covered for events such as suspensions and therefore made it predictable that they would only be denied due to lack of physical harm, which pandemics generally do not cause, "said Cleaver.
The biggest issue facing legislators is the ability to work together over ideological and political "We have a tough agenda ahead of us, and I'm not shrinking from it," he said.
Earlier on Tuesday, Charles Rivkin, president and CEO of the Motion Picture Association, said the lack of pandemic insurance threatens the ability of the film, TV and streaming industries to come back and return to something close to normal.
“Without it, especially business breaks and specialties insurance lines, productions large or small cannot protect filming from being suddenly shut down or canceled altogether, ”Rivkin said during the OECD event.
Many film and television productions were discontinued last year, affecting hundreds of thousands of jobs, he said.
A public-private partnership where the government provides an economic backstop to the insurance industry would support pandemic-related insurance offerings and provide the long-term security that the film and television industry needs to get back on its feet, he said.
Direct and rapid financial assistance is also needed to get film and television productions up and running again, he said.
"This immediate help would enable productions to survive now, while long-term insurance industry-based solutions are ready and implemented," Mr. Rivkin
Several governments around the world have already taken steps to strengthen their local economies for content production instead of the necessary insurance options, including Canada, the United Kingdom, France, Belgium, Germany, Austria, the Netherlands, Australia and New Zealand, he said. Catalog