Chubb CEO On Insuring In A Pandemic: ‘It’s Unlike Any Other Catastrophe’

 Friday, July 31, 2020

 CNBC

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.

“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.
CatastropheLiability
BROWSE RELATED NEWS ARTICLES