Just one day before President Joe Biden was sworn into office on Jan. 20th, the official COVID-19 death count in the U.S. surpassed 400,000. As the global health crisis continues to accelerate with no signs of waning, the need for economic relief becomes more pressing. In response, President Biden's $1.9 trillion economic rescue plan is aggressive, expansive, and expensive, as some economists say now is the time to go big. However, not everyone is sure the "American Rescue Plan" will pass, even with the Democrats controlling the House and Senate. "Biden's decision to raise the ante for a COVID relief bill suggests that he is anxious to address the deleterious effect of the pandemic on the U.S. economy as quickly as possible," wrote Tom McLoughlin and Brian Rose of UBS Global Wealth Management. "But the proposal carries a risk that its sheer size and scope will deter Republicans from participating in bipartisan negotiations." This package is in addition to the $900 billion relief package signed into law in December. Further, another aid request is planned that will focus on climate change and longer-term job creation — other priorities of the new administration. See the slideshow above for 11 key aspects of the new economic rescue package.

Additional legislation that can impact P&C insurance

President Biden's relief package is just one piece of legislation expected out of the new administration that can have implications for insurance businesses. "In the coming months, the property & casualty insurance industry is likely to encounter a frenetic pace of legislative activity on many issues affecting its operations," Sean Kevelighan, CEO at the Insurance Information Institute (Triple-I), said in a statement. For example, the proposed "Addressing Climate Financial Risk Act" from Sen. Dianne Feinstein (D-Calif.) aims to help federal regulators mitigate climate change risks within the financial system. Feinstein noted how the insurance industry is more affected by climate risk than other financial services in a December 2020 press release. The "Pandemic Risk Insurance Act," possible federal marijuana legislation, and a statute providing long-term reauthorization of the National Flood Insurance Program are other insurance-related policy issues that Biden and the 117th Congress are expected to address, according to Kevelighan. Additionally, insurers should watch for potential developments in risk-based insurance pricing. "[This] is an issue that's expected to heat up, and insurers will have to explain to a new set of legislators that the business of insurance hinges on predicting the level of risk a policyholder represents and charging a premium that corresponds with that level of risk," said Kevelighan. A version of this article originally appeared on ThinkAdvisor.com.  Related: 

• Five ways the Biden administration could impact cyber insurance
• Insurance underwriters may face more tax liabilities under Biden plan
• Following passage of CARES Act, insurance groups call for COVID-19 fund