The Coronavirus pandemic has seen the insurance industry take a massive reputational hit due lack of pandemic coverage in business interruption policies.
A poll of 211 CII members in June found that 61% had heard from clients who could no longer afford existing insurance premiums because their finances had been hit due to the Coronavirus pandemic.
The survey follows the FCA recently announcing that it was important individuals and businesses do not leave themselves uninsured.
Pandemic insurance, or a lack of, may be grabbing all the headlines right now but it is a symptom of a far wider problem.
Commercial insurance will only ever be able to cover a small, societally sub-optimal sliver of a whole massive list of perils catalogued by the National Risk Register. These range from cyber to climate change and many are only insurable if equitably supported by the state.
The credibility of the insurance market, and insurance as a proposition, hinges on the ability of the market to provide insurance products that respond to the next national crisis, pandemic or otherwise.
I am proud to represent a collective, Totus Re, who are looking to help close this gap.
What is Totus Re?
Totus Re is open collective to help the insurance sector and government better plan coverage for any catastrophic pan-economic event. It is the brainchild of Liz Foster, Non-Executive Director of The Society of Insurance Broking, and James York, Founder at Innovative Risk.
Totus Re is not political and is not embarked on with profit motive. It is a collective effort to open a dialogue and close the Society Insurance Gap.
The aim of the collective is to close this gap, and created certainty for the market, for the government, and all insured UK businesses. Certainty creates confidence – in our economy and our ability to endure the risks our society inevitably faces in the course of natural time.
Join the collective at www.TotusRe.com
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