Risk & Business Magazine Nesbit Agencies Spring 2020 | Page 14

THE NEW NORMAL: COVID-19
BEFORE AND AFTER COVID-19:
The New Normal
The COVID-19 crisis has
ground much of society as
we know it to a halt. That
begs the question: Will
what is “normal” change
after COVID-19? Anyone who flew on
an airplane before 9/11, for instance,
knows how different that experience
became. What might change now?
Pandemics are relatively rare.
COVID-19 is the first serious pandemic
the world has faced in modern times.
What are some things that might
change moving forward in the future?
Most of this is speculative, but more
likely than not some or all of them
could occur:
• There will be travel watchlists for
biological contaminants including
illness at airports and seaports.
• Economic recession. This one
should come as no surprise
because we are practically
already in the middle of one and
COVID-19 isn’t even over yet.
• Politically speaking, scientists and
physicians are likely to be more
involved with policymaking, a
least for the foreseeable future.
• The storage of basic medical
supplies, including face masks
and gloves, will likely become a
very commonplace thing, especially
given the shortages the world has
seen recently.
• Businesses and insurance
companies are going to come up
with ways to mitigate potential risks
that could stem from pandemics in
the future.
Other events could occur as well that
would change the general landscape
moving forward. Many companies,
particularly airlines and cruise ship
companies, are on the brink of collapse
unless they receive government bailouts.
Companies like Ford, with less income,
may experience a change in their credit
rating which would then trigger clauses
that require them to pay back loans,
which could put them deep in the red at
the very least.
Things might change dramatically across
the world in very obvious ways. Likewise,
things may not really change that much
at all. Time will tell either way. What
we know right now is that individuals,
businesses, and politicians can’t afford
to be caught off guard in the future like
they were this time. The economy fell
into a deep hole, and unfortunately, it
was very likely avoidable. In the future,
people will be better prepared if for no
other reason than the fact that they have
already seen what happens in this type
of situation and know what to do (and
what not to do).
For insurance companies, helping their
clients deal with temporary closures and
significantly reduced revenues is another
aspect of the problem. For one thing,
proposals attempting to revise contracts
and somehow compel insurers to pay
for excluded losses are at best offering a
false hope and, more likely, misleading
businesses who are already struggling.
Those businesses need real solutions,
not smoke and mirrors.
The crisis is unprecedented, at least
in modern times. Only the federal
government is capable of providing the
type of financial assistance required
to weather the storm. To that end,
insurers and professionals in the
industry are working closely with
businesses on proposals for assistance
from the federal government. The
fund which has been proposed would
likely be open to any business that
saw adverse effects stemming from
the pandemic and not limited to
only the minority of businesses who
bought business interruption coverage.
Additionally, the industry is working
with customers who are in financial
need by way of moratoriums on
cancellations and nonrenewals, grace
periods, and similar assistance. +
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