Pandemic Risk Reinsurance Program introduced in Congress
On May 22, 2020, US Representative Carolyn Maloney (D-NY), joined by twenty co-sponsors, introduced H.R. 7011, the Pandemic Risk Insurance Act of 2020 (PRIA).
The bill would establish a federal backstop for business interruption (BI) insurance losses resulting from future pandemics, called the Pandemic Risk Reinsurance Program (PRRP). PRRP would utilize the same framework as the federal Terrorism Risk Insurance Program (TRIP) and while some of the particulars of the program align with TRIP, others do not. PRIA also shares with TRIP a public policy objective to ensure widespread availability and affordability of coverage at levels the private insurance markets are currently unwilling to write, ostensibly for a transitional period until private markets are able to provide sufficient capacity.