Small Businesses and Insurers Agree: We Need Legislation Like Maloney’s Pandemic Risk Insurance Act

In his opening remarks at today’s hearing, John Doyle, President & Chief Executive Officer, Marsh, iterated the importance of a public-private partnership:

“At Marsh, we believe that a public-private partnership is the best option to pursue for a pandemic risk solution. For that reason, I want to recognize the leading role that Congresswoman Maloney has had in the debate, including producing the legislation that has brought us here today.”

He continued, “The complex nature of pandemic risk means that we need strong, national pandemic risk management. This requires insurers, backed by the federal government, to write pandemic insurance policies and for brokers to contribute our risk knowledge and infrastructure. Widespread pandemic coverage would make the insurance sector the first line of economic response in future outbreaks. A public-private partnership will help facilitate coverage, align the needs of insurance buyers and insurers to avoid losses and incentivize pandemic risk preparedness and mitigation.”

Ann Cantrell, owner of Brooklyn-based Annie’s Blue Ribbon General Store, testified that pandemic risk insurance would help small businesses like hers — and across the country — survive and bounce back from pandemic-related losses:

“Me and so many [other small business owners] would have hope and stability for the future.”

You can watch the full exchange between Ms. Cantrell and Congresswoman Maloney here[4].

Chubb, which has released its own pandemic risk insurance proposal that includes public/private risk-sharing provisions, was represented by Michelle Menendez McLaughlin, the Chief Underwriting Officer for Chubb North America, who agreed with Congresswoman Maloney that public/private risk-sharing is not only possible, but necessary, for any federal program, stating:

“Chubb feels that it’s very important for the industry to participate in a solution, by playing a risk-sharing role, because of the industry’s knowledge and experience, can help drive better behaviors. We really feel the industry needs to have some skin in the game here […] will lead to a better understanding of pandemic risk and will incentivize improved risk mitigation and preparedness.”

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