Navigating the COVID-19 Crisis: How Insurers are Supporting Recovery and Beyond

Immediate Customer Solutions

In response to the financial strain caused by the COVID-19 pandemic, insurers are providing payment relief and extending coverage to customers in need. This support is crucial, especially as the unemployment rate in the U.S. surged to 14.7% in April 2020, the highest level since the Great Depression. By keeping their employees on the job to serve these customers, insurers are not only easing financial burdens but also maintaining essential services.

Government-Backed Solutions

Insurers are advocating for the establishment of a COVID-19 Business and Employee Continuity and Recovery Fund, which would be financed by the federal government. This fund aims to provide essential financial support to employers and employees affected by the pandemic. According to the U.S. Chamber of Commerce, small businesses have been particularly hard hit, with 43% of small businesses temporarily closing due to COVID-19.

Facing Challenges Head-On

Despite the financial challenges, insurers are preparing for future natural disasters. For instance, a Triple-I non-resident scholar predicted an 'above-normal' Atlantic hurricane season. This proactive approach ensures that insurers have the resources to pay claims from events such as hurricanes, tornadoes, and wildfires. Additionally, insurers have contributed financially to food banks and organizations providing medical supplies, further demonstrating their commitment to community support.