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 losse
s

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.