Coalition Urges Support of COVID-19 Business Recovery Fund

The Reinsurance Association of America (RAA) along with a coalition including other insurance industry trade groups and business organizations sent a letter to President Donald Trump and congressional leaders urging them to support the COVID-19 Business and Employee Continuity and Recovery Fund, a solution to support businesses and employees hurt by the COVID-19 pandemic.

The recovery fund is the product of collaboration between the insurance and retail sectors and is designed to help businesses hurt by the COVID-19 pandemic retain and rehire employees, maintain worker benefits, and meet operating expenses. It would be funded by the federal government and operate under the authority of a special fund administrator.

"The RAA, together with a broad-based coalition of industry and retail trades, has developed what we consider to be a realistic and workable solution to the challenges faced by the business community during the COVID-19 pandemic," Frank Nutter, president of the RAA, said in a statement. "Our industry can and will support people and businesses hurt by this pandemic."

In their letter, the organizations commended the Washington leaders for the federal government's passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. "We urge the administration and Congress to continue to think broadly and holistically to address the catastrophic emergency that has caused these unprecedented economic challenges," the organizations wrote. "We believe the establishment of the Recovery Fund is necessary to supplement the efforts to expand lending in the CARES Act."

Among the other insurance industry groups participating in the coalition are the American Property Casualty Insurance Association, Council of Insurance Agents and Brokers, Independent Insurance Agents and Brokers of America, National Association of Professional Insurance Agents, National Association of Mutual Insurance Companies, and Wholesale and Specialty Insurance Association.