WASHINGTON, D.C. — David A. Sampson, president and CEO of the American Property Casualty Insurance Association (APCIA), released the following statement along with new industry data today:
“Insurers understand the urgency of helping businesses and individuals recover from this unprecedented crisis and preventing a larger shut down of the economy. Insurers are voluntarily implementing more than $8 billion in new discounts and refunds for policyholders; expanding flexible payment solutions for families, individuals, and businesses; suspending premium billing for small businesses such as restaurants and bars; and pausing cancellation of coverage for motorists due to non-payment and policy expiration.
“Business interruption insurance policies do not typically cover losses related to viruses. Only the federal government can be the bridge for a crisis of this proportion. The property casualty industry supports federal assistance programs that are delivering aid directly to vulnerable business communities, particularly affected small businesses.
“Insurers joined a broad business trade coalition calling for the COVID-19 Business and Employee Continuity and Recovery Fund, which would provide immediate financial assistance to impaired businesses to help them survive, reopen, and retain and rehire employees. Insurers are working with the business community for enactment of the Recovery Fund in the next federal COVID-19 relief package.
“Insurers are also encouraging policymakers to develop COVID-19 safety and liability protection standards that will help business owners manage the uncertainty of when and how to re-open. Threats of lawsuit abuse exploiting this crisis with litigation profiteering will stop America’s recovery before it even starts. Liability protections are especially important for the business leaders who have made heroic efforts to adjust operations to help our country combat the virus, including: manufacturers changing plants and capacity to make supplies such as sanitizers, face masks, face shields, and medical clothing; hotels pivoting to house medical workers, patients, and the homeless; and convention centers and other mobile sites becoming medical facilities.”
APCIA continues to analyze the latest available information to estimate the potential business community and insurance industry impact of COVID-19.
Small Businesses(fewer than 100 employees):
Small Businesses(fewer than 500 employees):
Surplus for all of the U.S. home, auto, and business insurers combined to pay all future losses is roughly $800 billion, with the combined capital of the top business insurance underwriters representing only a fraction of that amount. Surplus represents dollars held by companies, required by law, to pay future losses for existing contracts.
* Sources: APCIA using publicly available data sources including Bureau of Labor Statistics, Insurance Services (Verisk Analytics, Inc.), Houston Chronicle, S&P Global Market Intelligence, and other published reports.
** Source: APCIA’s calculation based on S&P Global Market Intelligence.