RIMS supports PRIA

RIMS, the risk management society, has announced its support for H.R. 7011, the Pandemic Risk Insurance Act of 2020 (PRIA) that was introduced by Congresswoman Carolyn Maloney in May.

Reviewed by RIMS External Affairs Committee, the proposed legislation will effectively create a federal program that provides a transparent system of shared public and private compensation for business interruption losses resulting from a pandemic or outbreak of communicable disease. The inclusion of a Pandemic Risk Reinsurance Program (PRRP) within the Department of the Treasury will also help to create a realistic market for pandemic insurance.

“PRIA is crucially important to the road to economic recovery, especially as businesses examine both the short- and long-term impacts of COVID-19 on business strategies,” said RIMS CEO Mary Roth. “RIMS applauds the efforts of our Congressional leaders to recognize the importance of creating a solution that addresses business interruption and strengthens future resilience. We look forward to continuing to contribute to the PRIA discussion and hope the Senate moves swiftly to introduce similar legislation.”

According to an April letter from RIMS to Congress and the Trump Administration supporting PRIA, the Society indicated that the legislation would provide greater access to capital from lenders and establish a viable insurance market with sufficient, affordable capacity. Additionally, it would create certainty for businesses and organisations of all sizes across the United States and ensure that businesses can meet future pandemic events with greater resilience.