American Insurance Association issued the following announcement on Nov. 24.
American Property Casualty Insurance Association (APCIA) member, Brian Kuhlmann, senior corporate counsel for Shelter Insurance Companies, testified today at the House Financial Services Committee’s Subcommittee on Housing, Community Development, and Insurance virtual hearing, “Insuring Against a Pandemic: Challenges and Solutions for Policyholders and Insurers,” in support of the Business Continuity Protection Program (BCPP). The BCPP is a customer-focused proposal for a federal program tailored specifically to help meet the financial challenges from future pandemics and bolster the U.S. economy.
“APCIA commends Chairman Clay, Ranking Member Stivers, and members of the subcommittee for holding this important hearing to explore solutions to protect businesses and workers against a future pandemic,” said David Sampson, APCIA’s president and CEO.
“The COVID-19 crisis has demonstrated the need for a comprehensive program to provide financial security to businesses during future pandemics.
“The BCPP is an affordable solution that can work for all businesses – small and large – to provide protection against widespread government-ordered economic shutdowns due to future viral outbreaks.
“The BCPP fills the needs of businesses to protect workers and avoids the uncertainty that has marked the current pandemic, including providing protection for recurrence and mutations when federal emergencies are declared, and government-ordered closures are enforced.”
In his testimony, Kuhlmann said, “As this Committee and Congress go about the important work of planning for future pandemics, it should be recognized that not every risk is insurable.”
Kuhlmann continued, “Understanding that global pandemics are uninsurable, an alternative mechanism will be necessary to protect businesses from future pandemics. Whatever that mechanism looks like, it should be focused on providing real, efficient, and effective financial assistance to all American businesses and non-profits.”
Kuhlmann highlighted the advantages of the BCPP:
The BCPP is the only proposal that could cover a recurrence of COVID-19;
The BCPP is the only public proposal that is designed to be available and affordable for small businesses that make up the backbone of the U.S. economy; and
The BCPP is the only proposal that is supported by nearly all of the insurance industry, including agents, and with APCIA and NAMIC representing over 90 percent of U.S. risk underwriters.
“APCIA and our members urge Congress to support the Business Continuity Protection Program to provide economic security for the United States,” concluded Sampson.
Kuhlmann’s testimony is attached.
Original source can be found here.
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