NAIFA members received a briefing on the Coronavirus Aid, Relief and Economic Security Act from NAIFA Senior Vice President of Government Relations Diane Boyle and Keith Gillies, CEO of United Wealth Advisors. They covered several potential benefits of the law that advisors need to discuss with clients.
Industry speaker Van Mueller offered NAIFA members five tips for contacting their clients during the coronavirus pandemic. Among them are to be positive and reassuring, avoid selling and to thank them for their business.
Insurers placed exclusions for infectious diseases in standard commercial policies after the SARS outbreak in 2002 and 2003. "Insurers realized they would not be able to cover such a broad-scale event," APCIA's Robert Gordon said. Noting the vast number of claims that could emerge from an outbreak, APCIA President and CEO David Sampson said that "this is a scale that only the federal government can bridge."
A policy introduced in 2018 by Marsh, Munich Re and Metabiota that offers pandemic-triggered business interruption coverage has not been purchased by any companies, but Marsh says the product is now in high demand, although the coronavirus is now excluded from the coverage. Aon also introduced a parametric product in 2018 that offers coverage for the hospitality industry if business is disrupted by an event such as a pandemic.
AXA plans to redeem $1.4 billion in contingent convertible bonds that were issued 10 years ago. The move eases investor concerns that banks might no longer make repaying such debt a priority amid the financial fallout from the coronavirus pandemic.
The Atlantic hurricane season likely will bring above-average activity, with eight of 16 named tropical storms likely to reach hurricane strength, according to Colorado State University's forecast. At least four hurricanes are predicted to be Category 3 or higher, with a 69% chance of a US landfall by at least one of those storms, experts said.
The National Oceanic and Atmospheric Administration says 23 states could see moderate to major flooding this spring, highlighting the need for more federal and state mitigation efforts to reduce spending on post-disaster aid, writes Forbes Tompkins of The Pew Charitable Trusts. "It is critical that all federally funded projects account for -- and ensure resilience against -- the extreme weather conditions expected over the design life of the project," Tompkins writes.
The workers' compensation sector is shifting to an online environment during the coronavirus pandemic, and the vast amount of claimants' personal data handled by the sector creates a need to strengthen security controls and employee training, according to experts. Nikki Ingram of Zurich North America noted that data breaches frequently start with employees, as "it's easier for the unsophisticated attacker to go after the human element," although sophisticated phishing attacks are also a source of concern.
The compliance date for the Securities and Exchange Commission's Regulation Best Interest and the Customer Relationship Summary form will remain June 30, SEC Chairman Jay Clayton said. Firms that are concerned about meeting filing deadlines because of the coronavirus outbreak "should engage with us," Clayton said.
The state of Pennsylvania has prohibited agents and brokers from engaging in face-to-face life insurance sales as part of its efforts to slow the spread of the coronavirus. Those who do no comply with the order risk losing their insurance license.
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