RIMS Backs Pandemic Risk Insurance Act (H.R.7011)
NEW YORK (June 3, 2020) – RIMS, the risk management society®, has announced its support for H.R. 7011 the Pandemic Risk Insurance Act of 2020 (PRIA) that was introduced by Congresswoman Carolyn Maloney (D-NY) in May. The introduced bill is available here.
Reviewed by RIMS External Affairs Committee, the proposed legislation will effectively create a Federal program that provides a transparent system of shared public and private compensation for business interruption losses resulting from a pandemic or outbreak of communicable disease. The inclusion of a Pandemic Risk Reinsurance Program (PRRP) within the Department of the Treasury will also help to create a realistic market for pandemic insurance.
“PRIA is crucially important to the road to economic recovery, especially as businesses examine both the short- and long-term impacts of COVID-19 on business strategies,” said RIMS CEO Mary Roth. “RIMS applauds the efforts of our Congressional leaders to recognize the importance of creating a solution that addresses business interruption and strengthens future resilience. We look forward to continuing to contribute to the PRIA discussion and hope the Senate moves swiftly to introduce similar legislation.”
According to an April letter from RIMS to Congress and the Trump Administration supporting PRIA, the Society indicated that the legislation 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 has launched a grassroots effort calling on the risk management community to contact their member of Congress to support the proposed bill. To cosign the legislation, RIMS has issued this form to its U.S. members.
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.