Risk Management During the COVID 19 Crisis
Risk Managers, Claim Managers and Attorneys are seeing a slowdown in new cases since most non-essential businesses (including the Courts) have been closed during the past several weeks. They are now starting to slowly reopen in an attempt to spur some economic activity. How are managers and attorneys organizing their time during this pandemic?
As we manage our business continuity plans for clients, it is become clear that opportunities exist to better understand how to become more efficient in the claim business. Also, new risks are presenting themselves as essential businesses and workers navigate this treacherous time. Some of the areas we have learned so far during this crisis include:
- Risk Management – The world has changed as organizations contemplate safe economic activity and workplaces. Personal Protective Equipment (PPE), Social Distancing and Hygiene are now becoming common terms and practices. The risk management profession is supporting all types of enterprises concerned about reopening in the age of COVID-19 including remote risk, claim and safety compliance, education and training.
- Settlements – Since attorney and insurer offices have been deemed “essential” businesses by jurisdictions around the country, there have been numerous opportunities to resolve claims in a reasonable manner utilizing the data that are available. Most importantly, both the claimant and insurer are finding ways to resolve the claim fairly.
- Emerging Exposures and Claims – Telecommuting, mental stress and business interruption claims are likely going to be with us for the foreseeable future. If the 2007-2009 recession was any guide, claims volume increased considerably and businesses and consumers paid the price in higher premiums. Keep a close eye on property, liability, workers compensation and disability claims for questionable situations.
- Emerging Insurance – The pandemic has raised concerns throughout the industry for adequate funding of future risks. Ms. Carolyn Maloney (NY) has introduced the Pandemic Risk Insurance Act, which is a similar framework as the current Terrorism Risk Insurance Act (TRIA) allowing the federal government to serve as a backstop to maintain marketplace stability and to share the financial burdens with private industry.
With a furlough of staff, please consider us during these times to supplement your internal resources. Please visit our Outsourced Risk Management site to learn more about how our specialized resources can help you during this pandemic.