The Pandemic Risk Insurance Act of 2020 (PRIA) was introduced by Carolyn B. Maloney, a member of the US House Financial Services Committee along with other stakeholders. The bill would create the Pandemic Risk Reinsurance Scheme, a network of joint public and private coverage for damages from potential pandemics or public health emergencies arising from business interruptions.
The act would be an important step in Congress’s prevention efforts against economic losses from future pandemics by both requiring insurance companies to offer business interruption insurance policies that cover pandemics, and creating a Pandemic Risk Reinsurance Programme to ensure that there is sufficient capacity to cover these losses and protect our economy in anticipation of a resurgence of COVID-19 and future pandemics, the Congresswoman said in a statement.
Like the Terrorism Risk Insurance Act (TRIA), federal government would serve as a backstop for maintaining stability in the marketplace and sharing the burden with private industry.
