US P&C insurers strong and solvent amid interest rate/COVID-19 impacts

Written by Adam Cadle

24/03/2020

US property and casualty insurers will be able to remain strong and solvent during the current period of lower interest rates and other financial impacts from COVID-19, Insurance Information Institute CEO Sean Kevelighan has said.

The National Association of Insurance Commissioners (NAIC) held a special session on COVID-19 through Webex recently, covering COVID-19 impacts on the health insurance market, policy coverage and insurer readiness.

Virginia Insurance Commissioner Scott White added to the debate, stating that whilst P&C insurers are strong, it is possible that lower interest rates could negatively impact insurance company earnings more generally.

The session moved on with a discussion of COVID-19's impact on the health insurance market. Troy Oechsner, deputy superintendent for health at New York State, and health firm, Manatt Health, shared information about the actions states have taken so far. They include: limiting cost sharing, limiting pre-authorisation, ensuring network adequacy, expanding telehealth, improving access to prescription drugs and doing outreach to consumers and providers. 

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