Three major insurance groups push taxpayer-funded pandemic support

National Association of Mutual Insurance Companies, the American Property Casualty Insurance Association and the Independent Insurance Agents & Brokers of America Inc. | May 22, 2020

  • An alternative federal proposal designed to protect businesses financially was unveiled by three major insurance industry groups.

  • Protection must be purchased at least 90 days before the presidential declaration, according to the proposal.

  • A draft bill outlining the proposed Pandemic Risk Insurance Act of 2020 has been circulating on Capitol Hill.


An alternative federal proposal designed to protect businesses financially against widespread economic shutdowns due to a future pandemic was unveiled Thursday by three major insurance industry groups.

The Business Continuity Protection Program would provide immediate revenue relief for payroll, employee benefits and operating expenses following a viral emergency declaration by the President, according to a statement from the National Association of Mutual Insurance Companies, the American Property Casualty Insurance Association and the Independent Insurance Agents & Brokers of America Inc.

Under the plan, which would be run by the Federal Emergency Management Agency and funded by taxpayer dollars, businesses would purchase revenue replacement for three months’ relief for up to 80% of payroll and other expenses, through insurers that voluntarily participate in the BCPP.
 

Read More: Atlas General Insurance Services announced the formation of the Client Solutions Group


Protection must be purchased at least 90 days before the presidential declaration, according to the proposal.

Businesses would be required to certify that they would use any funds received for retaining employees and paying necessary operating expenses and that they would follow federal pandemic guidelines.


Pandemics simply are not insurable risks; they are too widespread, too severe, and too unpredictable for the insurance industry to underwrite, Pandemics are a national problem, and we need a national solution.

- Charles Chamness, NAMIC’s president and CEO


The proposal comes after insurer groups indicated they were not supportive of a legislative proposal to create a federal pandemic backstop akin to the Terrorism Risk Insurance program created after the 9/11 terrorist attacks under the Terrorism Risk Insurance Act.

A draft bill outlining the proposed Pandemic Risk Insurance Act of 2020 has been circulating on Capitol Hill.

“A TRIA-like program, with an industry financial role, does not square with the fundamental notion that pandemics are not insurable risks,” the trade groups said in the statement.


Read More: NFS modernized flood insurance space by launching Trident


The Risk & Insurance Management Society Inc. said Thursday its external affairs committee will begin reviewing the alternative proposal.

“Our support for a PRIA solution doesn’t preclude us from backing other legislative proposals, especially those that are favorable to the risk management community,” said Whitney Craig, RIMS director of government affairs, in an emailed response.

Valid use of funds through the BCPP would be audited and enforced through fines, required repayment and criminal penalties, according to information provided by the trade groups.

NAMIC, the APCIA and the Big “I” said they will be working with members of Congress and the administration to enact the BCPP
 

About National Association of Mutual Insurance Companies (NAMIC)

Founded in 1895, the National Association of Mutual Insurance Companies (NAMIC) is a full-service national trade association serving the property/casualty insurance industry with more than 1,400 member companies that underwrite nearly 40 percent of the property/casualty insurance premium in the United States. NAMIC members are small farm mutual companies, state and regional insurance companies, risk retention groups, national writers, reinsurance companies, and international insurance giants.
 

About American Property Casualty Insurance Association (APCI)

Representing nearly 60 percent of the U.S. property casualty insurance market, the American Property Casualty Insurance Association (APCI) promotes and protects the viability of private competition for the benefit of consumers and insurers. APCI represents the broadest cross-section of home, auto, and business insurers of any national trade association. APCI members represent all sizes, structures, and regions, which protect families, communities, and businesses in the U.S. and across the globe.

Spotlight

Passing your driving test can be a very exciting moment. However, the price of car insurance for young drivers can often be quite a shock and seem unrealistic. Can you relate to this? Well, here are some useful car insurance tips for you.


Other News
CORE INSURANCE

CITIZENS NATIONAL ANNOUNCES LAUNCH OF CRITICAL ILLNESS PRODUCT

Citizens National Life Insurance Company | January 24, 2022

Citizens National Life Insurance Company ("Citizens National"), a subsidiary of Citizens, Inc. (NYSE: CIA) announces the launch of its new Critical Illness Coverage product. This will be Citizens National's third product launched in the past 12 months. The company is focused on developing products that provide value and benefits for their policyholders. Citizens National new Critical Illness Coverage product pays benefits directly to the policyholder to assist with added expenses in the event of a qualifying critical illness. The Critical Illness Coverage is unique in that a policyholder with a qualifying illness is directly paid benefits and decides where to spend the money – its uses are flexible and can be used for anything from medical deductibles to everyday expenses such as rent, food or childcare. "We are excited to be launching our third product just months after our Whole Life product Longevity Max. Critical Illness is an exceptional product designed to give policyholders coverage where they need it and help supplement their Health insurance to give them protection if they were to have a critical illness. One of the best features is it gives the policyholder the power to decide where to spend it. We are proud to continue to develop products that can help our policyholders." -Bob Mauldin, President and Chief Marketing Officer of Citizens National Citizens National offers an exclusive, customized service with its understanding of the Spanish and Portuguese languages and the Hispanic culture so customers can be confident in making the most informed decisions. The entire customer and agent experience is provided in a choice of Spanish, Portuguese and English languages. Our broad trajectory and experience in the life insurance market in Latin American, along with our excellent digital and customized service, make Citizens National a top option. About Citizens National Life Insurance Company Citizens National Life Insurance Company is a member of the Citizens, Inc. group of life insurance Companies. Citizens National was incorporated in the State of Texas on June 2, 1965 and began transacting business in 1966. CNLIC is licensed in 9 states. The company gains additional financial stability through the long trajectory and strength of its holding company, Citizens, Inc., which adds value to each of our policies by providing state-of-the-art technology systems, strong investment strategies and streamlined operational leadership. About Citizens, Inc. Citizens, Inc. is an insurance holding company listed on the New York Stock Exchange under the symbol CIA. The Company utilizes a three-pronged strategy for growth based upon worldwide sales of U.S. Dollar-denominated whole life cash value insurance policies, life insurance product sales in the U.S. and final expense and limited liability property product sales in the U.S.

Read More

INTELLECTUAL PROPERTY

Orion180 Hires Christoph Birchler as Chief Financial Officer Orion180 Logo (PRNewsfoto/Orion180)

Orion180 | February 16, 2022

Orion180, a homeowners insurance provider leveraging advanced technology to serve independent insurance agents in the Southeastern U.S., has announced the hiring of Christoph Birchler as Chief Financial Officer. The hiring capped a year of significant growth and business momentum that will carry the company into 2022. Birchler joined Orion180 in December 2021 and is responsible for directing the finance, audit, and treasury functions of the organization. "It's exciting to be part of a team that is truly focused on redefining the Insuretech space while providing customer-centric solutions and competitive products that will deliver unique value to our retail broker partners and insureds, I look forward to being part of Orion180's leadership team to improve on the solid financial foundation the organization has achieved, and further build on the vision and goals the company has set forth for 2022 and beyond." -Christoph Birchler as Chief Financial Officer. Mr. Birchler has more than 25 years of insurance and financial services experience. Prior to his role at Orion180, he served as an executive with Ernst & Young in New York and Zurich. During his tenure there, he led finance and multi-disciplinary teams in the disciplines of property and casualty, health, reinsurance, and M&As. Birchler's experience includes generally accepted accounting principles (US GAAP) and statutory financial reporting, International Financial Reporting Standards (IFRS), internal controls assessment and auditing. "Over the last year, Orion180 experienced tremendous growth, as the organization grew by over 400%. Christoph's experience working with property and casualty carriers across Europe and the US will be a tremendous asset to our team as we continue to scale, We are excited to welcome Christoph to our growing team." -Ken Gregg, CEO and Founder of Orion180. Headquartered in Florida, Orion180 operates in North Carolina, South Carolina, Alabama, Mississippi, Tennessee and Georgia with plans to continue expanding in 2022. About Orion180: Orion180 is a homeowners insurance provider leveraging advanced technology to serve independent insurance agents in the Southeastern United States. Providing a combination of human interaction and unsurpassed technology, Orion180 enables real time quoting, binding, and issue functions in a matter of minutes. The company simplifies the homeowners insurance process, providing products that are innovative, fast, and secure. Its product has an A- A.M. Best rating, which means consumers are protected even for the most severe losses.

Read More

INSURANCE TECHNOLOGY

Insurance King Acquires Two Insurance Agencies in IL: Vic Bernardi Insurance and The Insurance Center

Insurance King | January 17, 2022

Insurance King has announced the rebranding of the two insurance agencies they have purchased in Illinois. Vic Bernardi Insurance Agency located in Chicago Heights, IL established in 1985 primarily known for personal auto and SR-22 insurance filings will be the first Insurance King physical location in the Chicagoland Area. This location also services policies in Northwest Indiana. The office located at 710 Lincoln HWY Chicago Heights, IL 60411 is currently open during the remodeling process. The Insurance Center located in Decatur, IL established in 2009 provides auto, motorcycle, renters and SR-22 insurance. This office has relocated into the newly remodeled Insurance King at 255 E Grand Avenue, Decatur, IL 62521. Insurance King founded in 2001 is headquartered in Rockford, IL offering affordable Auto, Motorcycle, Renters, and SR-22 currently in CO, IA, IL, IN, KS, MO, MS, OH, TN, TX, and WI. Insurance King is a sponsor of NASCAR driver Josh Bilicki.

Read More

INSURANCE TECHNOLOGY

Arthur J. Gallagher & Co. Acquires Colorado-based Ryan Insurance Strategy Consultants

Arthur J. Gallagher | April 26, 2022

Arthur J. Gallagher & Co. today announced the acquisition of Greenwood Village, Colorado-based Ryan Insurance Strategy Consultants. Terms of the transaction were not disclosed. Founded in 1990, Ryan Insurance Strategy Consultants assists financial advisors with insurance recommendations for their clients. With its research focused on life, disability and long-term care insurance planning, the Ryan team performs due diligence on new and existing insurance plans prior to recommending any insurance solution. Ryan also helps administer association group insurance benefit programs that insure thousands of financial advisors for their own personal insurance needs. John Ryan and his associates will continue operating from their current location under the direction of Kevin Garvin, head of Affinity North America for Gallagher's retail property/casualty brokerage operations. Ryan's strong relationships with leading financial planning associations will help us deepen and expand our existing footprint in professional lines programs into new and growing segments, I am excited to welcome John and his colleagues to Gallagher." J. Patrick Gallagher, Jr., Chairman, President and CEO. Arthur J. Gallagher & Co. (NYSE: AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. The company has operations in 68 countries and offers client service capabilities in more than 150 countries around the world through a network of correspondent brokers and consultants.

Read More

Spotlight

Passing your driving test can be a very exciting moment. However, the price of car insurance for young drivers can often be quite a shock and seem unrealistic. Can you relate to this? Well, here are some useful car insurance tips for you.

Resources