American Property Casualty Insurance Association
  • Staff Contact: Eileen Gilligan     
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  • FOR RELEASE ON RECEIPT
  • May 26, 2020
  • White Paper Highlights the Uninsurable Nature of Pandemic Risks
  • WASHINGTON, D.C. — The American Property Casualty Insurance Association (APCIA) and Dr. Robert Hartwig, director of the Risk and Uncertainty Management Center at the University of South Carolina’s Darla Moore School of Business today released a white paper entitled “Uninsurability of Mass Market Business Continuity Risks from Viral Pandemics.”  

    The white paper explains why pandemic risks are inherently uninsurable and the potential systemic risk to the economy if the property casualty insurance industry were forced to insure COVID-19. It concludes that:

    • Business continuity losses arising from viral pandemics represent an inherently uninsurable risk for the private property casualty insurance industry.  
    • The magnitude of potential losses exceeds the claims paying resources of the industry. 
    • The ability to pool and redistribute pandemic losses within the private insurance sector is severely compromised.
    • Any solution involving the financing of pandemic-driven business continuity losses will necessarily require widespread government protection, which could, in turn, encourage increased innovation of specialized products by private insurers and reinsurers.


  • 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, with a legacy dating back 150 years. APCIA members represent all sizes, structures, and regions—protecting families, communities, and businesses in the U.S. and across the globe.
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