Convex CEO Stephen Catlin and UK insurance executives have formed a group to work with terrorism insurer Pool Re on developing pandemic responses, while the Risk and Insurance Management Society (RIMS) has written to the US Congress pressing for a Government backstop.

The moves come as pandemic exclusions drive international calls for Government-supported arrangements similar to terrorism covers to ensure insurance is available for business impacts caused by disease outbreaks.

The UK steering group, chaired by Mr Catlin and including executives from Aon, Guy Carpenter and Willis Re, says its main objective is “to propose an industry response to both the government and the country”.

Pool Re, a mutual company set up by the industry and the Government to ensure terrorism cover, will work closely with the group to provide structural recommendations.

“The insurance industry needs to be on the front foot in the current situation, paying claims quickly and continuing to provide people and businesses with the protection they require,” Mr Catlin said.

“Most importantly we need to find an industry solution for future pandemics and this group has many years of combined industry experience.”

Executives involved include Aviva CEO Maurice Tulloch, RSA CEO Stephen Hester, Pool Re CEO Julian Enoizi, Aon Reinsurance Solutions UK CEO Nick Frankland, Guy Carpenter International CEO James Nash and Willis Re CEO James Kent.

The group says further participants will be invited to join in due course.

Mr Catlin, who founded Catlin Group and has more than 40 years’ insurance experience, is also Chairman of the Pool Re advisory board.

In the US, RIMS this week issued a letter to the US Treasury, Congress and the Office of President Donald Trump requesting creation of a pandemic risk insurance program.

A RIMS survey finds 67% of risk professionals anticipate business interruption losses due to COVID-19. Some 77% expect the losses to exceed $US1 million ($1.5 million) and more than a third of that group estimates losses of more than $US25 million ($38.6 million).

The survey says 91% of respondents support a pandemic or epidemic loss-sharing program along the lines of Terrorism Risk Insurance Act (TRIA), introduced after the September 11 attacks.

“A pandemic risk insurance program would operate as a risk-sharing mechanism between the insurance industry, policyholders, and the Federal Government,” RIMS President Laura Langone says in the letter.

“As with traditional insurance policies, policyholders would absorb initial losses up to a specified deductible. Insurers would then provide affordable interruption coverage up to a certain limit with the government backstopping the program after that limit is exhausted.”

The TRIA backstop has been extended until the end of 2027 under a bill signed by President Trump in December.

Marsh & McLennan CEO John Doyle wrote to Congress and the White House at the end of March offering to help create a federal pandemic backstop, while US House of Representatives Democrats have also proposed a scheme.