A bill creating a US Government backstop for pandemic insurance has been reintroduced into Congress, with support from a business coalition that includes risk management society RIMS.

The Pandemic Risk Insurance Act 2021 (PRIA), put forward by New York Congresswoman Carolyn Maloney, would create a system of shared public and private compensation for business interruption losses resulting from pandemics or public health emergencies.

Insurers would be required to offer parametric non-damage business interruption policies to cover pandemics, with a Government-backed reinsurance program created to ensure sufficient capacity to cover losses.

“There is broad consensus that we need a program like the one created by PRIA to provide business owners and our economy with better stability in the event of any future pandemics,” Ms Maloney said.

“A forward-looking, public-private partnership like this, one supported by a federal backstop, will help businesses keep their employees on payroll and weather the storm that a public health emergency brings.”

The bill makes changes to a PRIA proposal introduced into Congress last year, in the first wave of the pandemic, after that proposal ultimately failed to gain sufficient traction ahead of the November elections.

RIMS in June joined the Business Continuity Coalition, which is supporting the PRIA bill. The coalition includes the National Football League, The Walt Disney Company, the International Council of Shopping Centres, the American Hotel and Lodging Association and other groups representing sectors hard hit by COVID-19.

“As organisations continue to fight and rebound from the impacts of the global pandemic, it’s critical that business and government leaders come together to develop a real insurance solution to prevent future economic disruption,” RIMS President Ellen Dunkin said last week.

“Risk professionals are well-positioned to provide a valuable perspective on insurance solutions that not only strengthen business resiliency but would allow our partners in the insurance industry to confidently deliver effective and affordable pandemic risk products.”