Coronavirus Wrap-up: Property/Casualty (4/7/2020)

Below are abstracts and links to recent articles related to coronavirus from a property and casualty insurance perspective.

Auto: Less driving, fewer accidents: Car insurers give millions in coronavirus refunds

One of the largest car-insurance companies in the country and a smaller Midwestern auto insurer are refunding hundreds of millions of dollars to their policyholders, citing a dramatic drop in accident claims from Americans hunkered down in their homes, The Wall Street Journal reports.

Allstate providing more than $600M to auto insurance customers amid pandemic

Allstate announced that it’s providing a Shelter-in-Place Payback to help its personal auto insurance customers during the pandemic.

Business Interruption:

This insurance would have helped in coronavirus crisis; nobody bought it

PathogenRX, a parametric insurance policy developed by broker Marsh, Munich Re, and technology firm Metabiota, is designed to provide business interruption insurance in the event of a pandemic, Insurance Journal reports.

Wimbledon nets £100m coronavirus cancellation payout

When the coronavirus outbreak forced the cancellation of Wimbledon it looked like game, set, and match against the All England Club. It turns out, The Times reports, that the club has insurance that covers infectious diseases and is putting together a claim potentially in excess of £100 million.

Insurers warn on forced payouts for uncovered coronavirus losses

World insurers told governments on Monday that making them pay out on losses suffered due to the coronavirus that were not covered by policies risked destabilizing the insurance industry, Reuters reports.

Considering a business interruption insurance claim due to COVID-19? Check your policy first

Insurance brokers say viruses and pandemics are specific exclusions in many such policies, which are often included with standard property and casualty coverage. But whether COVID-19 is the basis for a business interruption claim remains an open question as government leaders and the plaintiffs’ bar wrestle over the issue.

How social inflation may affect coronavirus business interruption losses

COVID-19 could produce a big increase in social inflation, according to A.M. Best. The reason: expectations that businesses will sue their insurers in an attempt to access their business interruption coverage for losses relating to the coronavirus pandemic.

After SARS, insurers changed policies covering businesses

SARS infected 8,000 people and led to millions of dollars in business-interruption insurance claims – including a $16 million payout to a single hotel chain. As a result, The Washington Post reports, many insurers added exclusions to standard commercial policies for losses caused by viruses or bacteria.

Flood:

FEMA extends flood renewal period

The Federal Emergency Management Agency (FEMA) announced that it will extend the grace period to renew flood insurance policies to help policyholders affected by the coronavirus (COVID-19) pandemic. FEMA said it would push back the grace period from 30 days to 120 days.

Property:

Florida’s property insurer of last resort, announced it will suspend cancellations and non-renewals for the next 45 days.

Wildfire:

Firefighters say coronavirus will obstruct emergency service, evacuations as wildfire season closes in

First responders are preparing for raging wildfires that they expect will consume thousands of acres and drive some residents from their homes in upcoming months. But this year, CNBC reports, preparations have stalled. The coronavirus pandemic has hit the country’s already strained emergency services, raising concerns over inadequate disaster relief during peak fire season.

Workers Compensation:

Catch coronavirus on the job? In Florida, workers comp may not cover you

Florida’s Chief Financial Officer has ordered the Division of Risk Management to fulfill workers’ compensation claims for frontline employees who work for the state, the Tampa Bay Times reports. But the order doesn’t include similar workers in the private sector.