Yale School of Management

Posts by Insurance

COVID-19 and Insurance (3 of 3): Capital Conservation and Countercyclical Regulation

June 17, 2020

Insurance supervisors around the world outside the U.S. have urged companies they supervise to conserve capital during the COVID-19 crisis by limiting payouts to shareholders and bonuses to executives. 

At the same time, many supervisors have sought to help insurers avoid procyclical behavior by mitigating the impact of volatile market swings on the value of insurance company assets and, in turn, on measures of their capital adequacy. 

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COVID-19 and Insurance (2 of 3): Operational Regulatory Relief

June 16, 2020

Many insurance supervisors have provided temporary relief to help companies manage during the COVID-19 crisis.

Most of this relief comes in the form of extended deadlines for submitting various reports or provisions that make remote compliance easier. Regulators have also suspended supervisory activities and loosened accounting rules.

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COVID-19 and Insurance (1 of 3): Helping Individuals and Businesses

June 15, 2020

Insurance companies face unusual challenges during the COVID-19 crisis. This blog describes efforts by companies and their supervisors to:

  • Reduce financial burdens on insurance customers, for example, by allowing them to defer premium payments. 
  • Resolve the controversy over whether existing insurance coverage extends to businesses that have lost revenue during the crisis.
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Countries Propose Catastrophe Insurance Through Public-Private Partnerships

June 2, 2020

On May 26, Congresswoman Caroyln Maloney introduced the Pandemic Risk Insurance Act of 2020 (PRIA). The PRIA would provide a framework for insurers to supply business interruption insurance to businesses affected by the COVID-19 pandemic. Insurance companies that choose to participate would offer pandemic coverage to businesses and, should aggregate insurance industry losses exceed $250 million, the federal government would cover most of the  losses.

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