The House Financial Services Subcommittee on Housing, Community Development and Insurance will hold a hearing Nov. 19 to examine the Pandemic Risk Insurance Act (PRIA) and how to address the need for coverage during a pandemic.
This hearing was originally scheduled for the summer and is a major step to building bipartisan support. ASAE endorsed PRIA in May and staff continues to heavily engage this issue.
PRIA would create a system of shared public and private compensation for business interruption losses resulting from future pandemics or public health emergencies. Under PRIA, covered business interruption insurance losses would include commercial lines of property and casualty insurance, event cancellation insurance, or other non-property contingent business interruption insurance. Like the Terrorism Risk Insurance Act (TRIA), created after the 9/11 terrorist attacks, the federal government would serve as a backstop to maintain marketplace stability and to share the burden alongside private industry.
In September, ASAE President and CEO Susan Robertson, CAE, participated in a congressional roundtable with Rep. Carolyn Maloney (D-NY), lead sponsor of PRIA, and other trade association leaders interested in ensuring that businesses and associations can financially recover from future waves of COVID-19 and other pandemics that may occur.
“ASAE called for a PRIA-like package back in March when this crisis first hit and now we are so proud to vigorously support the Pandemic Risk Insurance Act,” Robertson said during the roundtable. “It is essential to the sustainability of associations and so many others during this crisis.”