ASAE Submits Statement for Senate Banking Hearing on Insurance

ASAE submitted a written statement for a Senate Banking Committee hearing last week, urging Congress to establish a public-private pandemic risk insurance program.

The Senate Banking, Housing and Urban Affairs Committee hearing on Sept. 8 was on “Current Issues in Insurance,” and the Pandemic Risk Insurance Act (PRIA) endorsed by ASAE and other members of the Business Continuity Coalition came up frequently in the discussion. Other topics discussed in the hearing included private equity companies’ involvement in the insurance market, the Insurance Capital Standard (ICS), cyber insurance and flood insurance.

PRIA, introduced last year by Rep. Carolyn Maloney (D-NY), senior member of the House Financial Services Committee, would create a system of shared public and private compensation for business interruption losses resulting from future pandemics or public health emergencies.

Associations, which were forced to cancel numerous in-person meetings, conferences, trade shows and other revenue-driving events during the height of the COVID-19 pandemic, are highly invested in securing a federally backstopped pandemic risk insurance program to mitigate losses should another pandemic occur.

“Associations, event venues, hospitality providers and the millions of companies and employees they support need pandemic risk insurance to protect jobs and our community’s far-reaching economic impact,” ASAE said in its written statement for the hearing. “Associations promote all industries and professions through myriad revenue-generating events, such as conventions, trade shows and business meetings.”

ASAE noted that communicable disease coverage for event cancellations was available in February 2020 but is “virtually nonexistent today.”

“As a result, associations and other employers have no recourse but to face untenable risk should another pandemic strike,” ASAE said.