American Insurance Association issued the following announcement on March 18.
David A. Sampson, president and CEO of the American Property Casualty Insurance Association (APCIA) issued the following statement:
“The U.S. property-casualty insurance industry continues to be a bedrock of financial stability helping protect families and businesses. Insurers also have extensive emergency continuity plans they are implementing to continue providing services effectively during times of crisis. Insurers’ financial solvency is closely monitored by regulators with a surplus of over $822 billion in the U.S. and $2 trillion globally," said Sampson.
“Event cancellation insurance coverage is conservatively underwritten, reserved, and reinsured globally. Standard event cancellation insurance policies do not include communicable disease coverage such as COVID-19. While consumers typically have the option to purchase broader coverage through special endorsements, that exposure only represents a small fraction of insurers’ surplus. Industry solvency will only be at risk if insurers are forced to pay claims not covered by current contracts.”
Original source can be found here.
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