CHUBB SETS OUT GOVERNMENT-BACKED PANDEMIC SCHEME

Chubb has set out its proposal for a government-backed pandemic insurance facility for businesses in the US. Under Chubb’s plan, the government would offer up to $750bn in pandemic cover for small businesses, although Covid-19 would be excluded. In the facility’s first year, insurers would pay 6% of claims, or up to $15bn, growing annually to 12%. Participation in the scheme would be compulsory for businesses and insurers, with premiums paid only for the insurer’s participation. For businesses with more than 500 employees, Chubb proposed a voluntary scheme where insurers would provide up to $400bn in coverage through a government reinsurance entity. Insurers would share up to $15bn during the program’s first year, rising to $40bn. Payouts to businesses would be limited to $50m per policy.