National Association of Mutual Insurance Companies: Coronavirus and the Mutual Insurance Industry
Targeted News Service
INDIANAPOLIS, Indiana, March 28 -- The National Association of Mutual Insurance Companies issued the following statement on March 27 by President and CEO Charles M. Chamness:
"Despite the unprecedented economic disruption caused by the response to the COVID-19 pandemic, NAMIC member companies remain focused on their sole mission of serving policyholders. Mutual insurance companies have taken steps to help their policyholder members get through this crisis, including increased flexibility and the adoption of procedures to enable remote inspections and claims adjusting.
"Today, Congress and the White House have approved historic legislation to address the challenges of COVID-19 and provide much needed relief for American businesses and employees. NAMIC and others in the insurance industry continue working with Congress, policyholders, state insurance regulators, and lawmakers at every level of government to be a part of the solution to this problem.
"Some have asked our industry to absorb pandemic cost by ignoring policy exclusions and instituting retroactive business interruption coverage. If elected officials require payment for perils that were excluded, never underwritten for, and for which no premium was ever collected, catastrophic results will occur and we may deal with a second crisis: insurance insolvencies and impairments. There will also be irreparable harm done to contract law, and the impact of this will be felt by every business in America.
"COVID-19 is a national crisis that requires a national solution, and our elected leaders will continue to respond as necessary. In the meantime, absent any misguided actions in legislatures, court chambers, or by regulatory authorities, our industry is financially sound and working as intended. Mutual insurance companies have been helping fuel the American economy and protecting policyholders since 1752, and we'll still be here and doing our job after COVID-19 has been brought under control."