On Tuesday, Rep. Carolyn Maloney, D-N.Y., introduced a second iteration of the Pandemic Risk Insurance Act. This version aims to establish a federal backstop for pandemic risk.

The Pandemic Risk Insurance Act of 2021 (PRIA), H.R. 7011, would establish the Pandemic Risk Reinsurance Program that would create a system of shared public and private compensation for business insurance losses resulting from future pandemics or public health emergencies. The program would ensure that there is sufficient capacity to cover these losses and protect the economy in case of a resurgence of COVID-19 or potential future pandemics. Rep. Maloney originally introduced this legislation in May of 2020 in the midst of and in response to the COVID-19 pandemic.

Similar to the Terrorism Risk Insurance Act, in PRIA the federal government would serve as a backstop to maintain marketplace stability and to share the burden alongside the private insurance industry.