PIA Urges Public-Private Partnership to Protect Small Businesses Against Future Pandemics
A public-private partnership is the best way to protect against the financial repercussions of a future pandemic, stated PIA National in written testimony submitted November 19 for a hearing of the House Financial Services Subcommittee on Housing, Community Development and Insurance. This hearing follows a September Congressional Roundtable in which PIA National President Wayne White testified and expressed PIA’s support for the Pandemic Risk Insurance Act (PRIA), H.R. 7011, introduced by Rep. Carolyn Maloney (D-NY).
“Without a federal government backstop, it is not clear that insurers would—or could—provide coverage for losses resulting from pandemics,” said Jon Gentile, vice president of government relations at PIA National. “But with a federal backstop, losses that arise out of future pandemics could be insurable.”
READ: House Committee Holds Hearing on Insuring for a Pandemic
PIA National also urged Congress to pursue a solution that works within the framework of the insurance industry and does not force independent insurance agents to sell non-insurance products. “A public-private partnership that utilizes the existing insurance framework could, over time, cultivate the development of a private pandemic market that operates independently of the federal government,” Gentile said.