Pandemic risk insurance: Need for a European response?
Business interruptions triggered by administrative decisions in the wake of the COVID-19 pandemic have sparked debates across the world as to whether business interruption clauses in insurance contracts indeed apply to COVID-19 related lockdowns.
Beyond the legal litigation, the pandemic has highlighted the urgent need for the public and private sectors to work in partnership in designing an accessible and widely encompassing pandemic risk insurance product.
Over the last months, various initiatives have emerged, both on the regulatory and industry sides, to offer an initial blueprint of a private-public framework for a pandemic risk insurance. In July 2020, EIOPA highlighted options for developing shared resilience solutions for pandemic risk, and explores different insurance models and coverage. The French Government has recently consulted on the framework for a pandemic risk framework, with a view of passing legislation before the end of the year. In Germany, the insurance industry has proposed spreading the risks associated to pandemic insurance through bonds sold on the capital markets. The US Congress is also considering legislation for an insurance programme which would make business interruption insurance widely available, at a reduced cost.
However, many points remain open for discussion, such the compulsory nature of pandemic insurance, cross-border situations, the scope of insurance (workers compensation and general liability insurance) and the pricing of risk.
This webinar will explore the need for developing a pandemic risk insurance product resilient to withstand future business interruptions linked to a pandemic, as well as the different roles public and private operators can play in shaping it.
Topics of Discussions will include:
- How to delineate the risk sharing between public authorities and industry;
- Are NatCat and terrorism insurance protections relevant starting points;
- Whether pandemic risk insurance should be made mandatory, and if so how can an efficient and effective market be created;
- Whether a European solution is desirable and how to achieve it.
- Webinar link: https://zoom.us/j/94228360874
Speakers
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Carlos Montalvo RebueltaEMEA Insurance Regulatory Leader, PwCCarlos Montalvo joined PwC in 2016, following a career of more than 15 years in the area of regulation and supervision of insurance undertakings and groups.
He is EMEA Insurance Risk and Regulatory leader, anticipating regulatory trends and providing coordinated responses that benefit from his expertise in the global and European regulatory landscape.
Until end March 2016, and since 2011, Carlos was the first Executive Director at the European Insurance and Occupational Pensions Authority, in charge of its management, multi-annual and annual work programs, organization, people and finances. Prior to that, Carlos was appointed (2007-2010) as Secretary General of the Committee of European Insurance and Occupational Pensions Supervisors. During his mandate, he was deeply involved in the European response to the financial crisis and the Technical Advice development to build up Solvency II.
Carlos also played a number of relevant roles at the Spanish Insurance Supervisor (2000-2007), including representing Spain at Council meetings during Solvency II negotiations, or at CEIOPS Board.
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Didier MillerotHead of Unit Insurance and Pension, DG FISMADidier Millerot, born 1968, Franco-Belgian nationalities.
Didier Millerot joined the European Commission in 1994. He joined DG MARKT in 1997 where he held several legal positions.
He was appointed Deputy-Head of the Asset Management Unit in 1997 where he took active part in the negotiation of the UCITS IV and AIFM Directives.
After a year of secondment in the cabinet of Commissioner Barnier, Didier was appointed Head of the Accounting and Financial Reporting unit in 2012, a period during which the Accounting Directive was simplified and new transparency requirements introduced (non-financial reporting).
Didier then joined unit FISMA/D2 in 2015. During that period, new EU legislation on covered bonds was introduced. Didier also led the review of prudential requirements for investment firms.
Appointed Head of the Insurance and Pensions unit in 2019, Didier is now in charge of the Solvency II review. He also represents the European Commission at the EIOPA Board of Supervisors and in the IAIS ExCo. -
Dr. Ralf Fischer zu Cramburg
Head of Public Affairs, Munich Re
Dr. Ralf Fischer zu CramburgHead of Public Affairs, Munich Re -
Justin WrayHead of Policy Department, EIOPAJustin Wray is Head of the Policy Department and Head of the Insurance Policy Unit. At EIOPA Justin has been responsible for the provision of advice on the IORP II directive, EIOPA’s technical standards and guidelines required under the Solvency II directive.
Before joining EIOPA in May 2011, Justin worked at the UK Pensions Regulator in a number of operational and policy roles including as Head of Pensions Administration and Governance. Prior to this, Justin worked at the UK Treasury on financial services regulation and international debt issues, and at the UK Department for International Development.
Justin holds bachelors and masters degrees in economics (Universities of Southampton and Warwick), and an MBA from Cranfield University.
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Lionel CorreDeputy Director for Insurance, French TreasuryLionel Corre has been Deputy Director of Insurance at DG Trésor since December 2017. In charge of developing and implementing regulations for the insurance sector in France and within the framework of European negotiations, Lionel Corre represents in addition, the French State on the Board of Directors of public bodies such as the Central Reinsurance Fund or the Pension Reserve Fund.
Lionel Corre was previously Secretary General of CIRI, the Interministerial Committee for Industrial Restructuring, still within DG Trésor, and was also in charge of Bpifrance and the financing of companies.
He was previously economic advisor at the French Embassy in Israel between 2012 and 2016, advisor in the office of the Minister of Energy between 2010 and 2012, chargé d’affaires at the State Participations Agency between 2008 and 2010. He began his career in insurance supervision at ACAM, which has since become ACPR. Lionel CORRE is a mining engineer, graduated from Ecole Polytechnique and Sciences-Po Paris. He was trained in actuarial science at the Institute of Actuaries in Paris and taught non-life actuarial science at the CNAM.