The European Insurance and Occupational Pensions Authority (EIOPA) has said that national governments must help to provide pandemic business cover in future lockdowns, according to reports from Reuters.
EIOPA Chair Gabriel Bernardino told the publication that the private sector does not have the capacity to provide such broad coverage alone.
Bernardino also warned against retroactively changing policies to force payment of business interruption claims related to the pandemic, which he said were outside of insurers’ control.
“If we really want to build more resilience in our societies against situations like this pandemic, there is clearly a need to have in place mechanisms to cover it,” he told Reuters.
“To be honest, I think it’s only possible by combining public and private elements. I don’t think this is possible for the insurance industry alone to cover it.”
While Bernardino believes that the re/insurance industry has weathered the crisis well so far, he added that volatility in the equity markets will continue for some time.
In response, EIOPA has urged EU insurers to suspend dividends until more stability returns to the market.
“The final decision is from each and every one of the national authorities,” Bernardino said, noting that the recommendation had “overwhelming” backing from national regulators.
