The Pan-Asia Risk and Insurance Management Association (PARIMA) has issued a statement calling for the region’s insurers and brokers to exhibit the flexibility and partnership necessary to help corporations in the region survive the COVID-19 pandemic and execute their recovery plans.
According to PARIMA, the world is facing an “unprecedented crisis,” with many companies under extreme pressure and in real danger of having to close down.
The association said that support of the insurance industry is critical for businesses, and it stressed the importance of businesses having continued access to insurance and information to navigate uncertain times.
Meanwhile, PARIMA also acknowledged the stress insurers are undergoing and cautioned regulators against imposing retroactive coverage of claims that are not contained in the contracts, arguing this could create material solvency risks for insurers.
“Regulators enforcing retrospective changes would jeopardize contract certainty and erode the trust needed to build a long term and collaborative relationship, a relationship that will be essential for business in recovering from the pandemic,” it said.
Moving forward, PARIMA advocated for the creation of national/regional insurance pools to deal with future pandemic risks. According to the organisation, these pools have been useful in responding to other severe and widespread risks, such as terrorism, and may also help in dealing with a global pandemic exposure.
“PARIMA is prepared to provide an expert view from risk and insurance managers to support this cause,” it added.