In a recent article, Insurance Information Institute (Triple-I) CEO Sean Kevelighan affirmed that insurance companies are prioritizing efforts and resources to make sure all policyholders know about the coverage they have and need in this challenging COVID-19 environment.
Here are a few highlights from Kevelighan's piece:
- Explaining how pandemics are uninsurable is a crucial part of insurers' mission to make people more prepared, resilient, and informed. "Unlike covered events, which are limited in time and geography, pandemics simultaneously affect everybody. This is something we've explained in briefings to legislators, legal experts and consumer and trade media."
- There is a consensus that pandemic business recovery requires federal solutions, as insurers continue to play their vital role in covering losses from hurricanes, wildfires, and civil unrest. "Insurance simplifies a rather complex risk management process and creates products that deliver simpler ways for people to be more prepared and resilient. Covering these hazards demands immense capital resources."
- Insurance policies, including standard business interruption policy triggered by direct physical damage, stem from a strong working partnership between insurers and regulators. "As many courts and academics around the country have stated, neither a virus nor bacteria leads to the direct physical damage of a business's structure. This contract language is well-established; moreover, every policy is approved by individual states before they are issued to BI policy holders."
"In an age when we're all accustomed to just clicking the 'terms and conditions' box, ignoring agreements, paradoxically, has become something everybody can agree with," wrote the Triple-I CEO of the organization's endeavor in educating insurers and policyholders alike. "We view it as a success when nobody is shocked by what's covered, and what's not, under their insurance policies."
If interested in engaging or sharing, the full piece can be found on LinkedIn here. For more information and resources, visit fairinsure.org.