Measles and the role of the P&C insurance industry

After being ”declared eliminated” by the end of the 20th century, measles recently roared back into the United States.

There may not be a singular reason for the resurgence of this highly contagious respiratory disease that causes flu-like symptoms, diarrhea and a blistering rash. But health officials say that some of the responsibility lies with unvaccinated travelers going abroad and then bringing measles back to the U.S., as well as residents here who believe vaccines are unnecessary or cause harmful side effects.

Three in 10 Americans think vaccines should not be mandatory, according to a 2015 article in The Washington Post. The polling cited by WashPo reporters found that 9% of Americans believed the measles vaccine to be unsafe, and 7% were unsure.

Seeking patient zero

This year, a measles outbreak in Brooklyn’s Orthodox Jewish community prompted Mayor Bill de Blasio to declare a public health emergency on April 9, 2019, and require all residents to be vaccinated. According to the New York Times, the mayor is willing to temporarily shut down yeshivas that refuse to abide by the vaccination measure.

Bloomberg has reported the contagious and potentially deadly virus has afflicted 285 New Yorkers since October, including 246 children, almost all of them in the Orthodox Jewish community.

Rockland County, N.Y., a northern suburb of New York City, also is experiencing an outbreak of measles.

According to statistics available from the Centers for Disease Control and Prevention (CDC) at the time of publication, 555 individual cases of measles have been confirmed in 20 states so this year.

Insuring against infectious diseases

The effects of a measles outbreak will impact more than public health. The P&C insurance, travel and tourism industries along with professional sports and entertainment could all be adversely affected if the resurgence of measles cannot be contained.

New York City’s public health emergency order applies to anyone living, working or going to school in four ZIP codes in Williamsburg. It requires anyone who is not vaccinated to receive the measles-mumps-rubella vaccine, including all children over six months old, according to abc7NY.

Yeshivas and businesses in the affected areas may have business interruption claims as a result of the order. While most “traditional” forms of commercial coverage do not address the indirect effects of outbreaks and pandemics, including the loss of business because of public fear of travel, AWS Insurance writes: “Business interruption coverage is triggered when there is physical damage to the property. In the case of a pandemic, contamination is considered damage.”

In this case, business interruption insurance could cover the cost of decontamination and sanitation of the premises.

As far as the question of public risk mitigation, the insurance industry will need to monitor how the recent measles outbreak develops. Managing the risk of an infectious disease going forward will fall, in part, on the shoulders of insurance professionals.

Related:

• 3 industries most at risk in the event of an epidemic outbreak
• Widening anti-vaccine movement paves way for measles comeback