Chubb Chairman and CEO Evan Greenberg told CNBC on Thursday the insurance industry is confronting an event like no other when it comes to the Covid-19 pandemic.CatastropheLiability
“It has no time limit, and it has no geographic bounds,” Greenberg said on “Squawk Box.” “For business interruption, the loss is essentially infinite, and insurers have a finite balance sheet.”
“So, the insurance industry’s ability to take pandemic risk is very limited,” he added.
The Covid-19 crisis has highlighted how property and casualty insurance companies typically do not cover pandemics.
However, as the crisis has forced the closure of a record number of businesses, with losses estimated to be $1 trillion, according to the American Property Casualty Insurance Association, the industry has initiated a conversation with the government about a subsidized response to business interruption insurance.