The working group created by the French ministry of economy and finance to investigate the best form of state-backed insurance scheme to cover pandemics will present its report very soon.
According to a report published on the website of Commercial Risk Europe, French Risk and Insurance Management Association (AMRAE) president Brigitte Bouquot has said no structure has been decided yet as there are a number of options, including counterproposals for the range of lawsuits brought against insurers for denial of pandemic claims under business interruption policies.
Ms Bouquot said, “Schemes in order to pool insurance for pandemic or sanitary catastrophe have been proposed by the French Insurance Federation and the CSCA, the insurance broking group but nothing has been decided.”
AMRAE has asked for incentives to promote resilience through risk management and self-insurance for business in order to avoid and reduce systemic losses, as a first step, and to support a true non-damage business interruption cover market, as a second step, supported by the state,” said Ms Bouquot.
The proposal includes pandemic risks as part of a wider range of risks including terrorism, riots and natural catastrophes.
The association’s ‘exceptional disaster’ system proposed by insurers would aim to be simple, swift and on a lump-sum basis to help insured businesses make it through cessations or significant reductions in activity associated with an exceptional event such as a pandemic, the aftermath of a terrorist attack, riots or a natural disaster.
It could be triggered after a declaration by the state of administrative closure affecting a number of businesses for a specific period and over a particular geographic area.