NEW YORK (April 20, 2020) – RIMS, the risk management society®, issued a letter to the U.S. Department of the Treasury, Congress and the Office of U.S. President Donald J. Trump requesting the creation of a pandemic risk insurance program to accelerate economic recovery. The full letter can be found here.
According to RIMS’ letter, a pandemic risk insurance program would provide greater access to capital from lenders and establish a viable insurance market with sufficient, affordable capacity. Additionally, it would create certainty for businesses and organizations of all sizes across the United States and ensure that businesses can meet future pandemic events with greater resilience.
RIMS is calling on the risk management community to support this initiative by contacting their local Congress member via this brief form.
Prior to the letter, the Society administered a survey to U.S. risk professionals to ascertain their perspective on a federal pandemic insurance backstop. Key findings from survey included:
- 67% of risk professionals anticipate direct business interruption losses due to COVID-19;
- 77% expect the losses to be over $1M. Included in that group was 36% who estimate losses to be more than $25M;
- 91% are supportive of a TRIA-type federal loss-sharing program for insurance claims relating to losses resulting from a pandemic or epidemic;
- 65% of risk professionals would be willing to pay up to 5% more in premium.
“From our homes and our local communities to the boardrooms of some of the world’s largest corporations, COVID-19 has highlighted the need for strong risk management strategies to address interruptions resulting from a global pandemic,” said RIMS President Laura Langone. “Congress has done exceptional work by quickly introducing the CARES Act but there is still much work to be done. We look forward to the opportunity of collaborating with them to develop a sound pandemic program that instills confidence in businesses and reinvigorates the economy.”
RIMS provides risk management professionals from around the world with access to resources and educational programming to help them navigate COVID-19’s impacts, as well as many other business risks. The Society’s External Affairs Committee continues to monitor legislative and regulatory issues that impact organization’s ability to protect employees, property and data and reach their respective strategic goals.
For more information about RIMS advocacy initiatives and its Risk PAC, visit www.RIMS.org/advocacy.