House Lawmakers Propose Creation of Reinsurance Program for Pandemic Risks

WASHINGTON, D.C. — A senior member of the House Financial Services Committee has proposed a multi-million-dollar reinsurance program modeled after the Terrorism Risk Reinsurance Act, which would create a backstop for pandemic risks.

H.R. 7011, introduced by U.S. Rep Carolyn Maloney D-N.Y., and 20 co-sponsors, calls for creation of the Pandemic Risk Reinsurance Program (PRRP), a system of shared public and private compensation for business interruption losses resulting from future pandemics or public health emergencies.

The PRRP would require insurers to offer business interruption insurance policies that cover pandemics and would “ensure that there is sufficient capacity to cover these …