David A. Sampson, president and CEO of the American Property Casualty Insurance Association (APCIA) issued the following statement:
“The property casualty industry is an essential stabilizing force in America. We have always been a part of solving some of the greatest challenges facing America, especially during times of major catastrophes.
“Insurers are for a national solution on managing pandemic risk to support an efficient and well-functioning economy. Managing these risks will be critical to supporting jobs and businesses, and our country’s supply chain, as we rise from the crisis. America has options and insurers will help propose solutions.
“During this unprecedented era, we remain focused on our promise to our customers — paying claims for motorists, injured workers, homeowners, renters, and businessowners. Many insurers are implementing contingency and continuity plans for pandemics to protect their employees and reduce interrupted service to consumers. Some insurers also are implementing new flexible payment solutions for policyholders, ensuring their homes, businesses, and properties remain protected during times of financial stress.
“Insurers recognize that American businesses are facing unprecedented disruption. Many standard event cancellation, business interruption, and travel insurance policies do not include coverage for communicable diseases such as COVID-19. Although, some businesses have purchased broader protections through specialized coverage.
“APCIA supports the federal assistance programs that the Administration and Congress are proposing to deliver aid directly to vulnerable business communities, particularly affected small businesses.
“However, if policymakers force insurers to pay for losses that are not covered under existing insurance policies, the stability of the sector could be impacted.
“Insurance stability is especially important in a time of increased natural catastrophes. Spring flood season is underway, hurricane season is around the corner, and wildfires pose a threat year-round.
“We stand ready to work with the President, Congress, and state insurance regulators to ensure our nation recovers from this crisis, and to provide effective relief to those most vulnerable, as well as forward-looking answers that speed economic recovery from future pandemics.”
The American Property Casualty Insurance Association (APCIA) is the primary national trade association for home, auto, and business insurers. APCIA promotes and protects the viability of private competition for the benefit of consumers and insurers.
SOURCE: American Property Casualty Insurance Association