Newly Revived Pandemic Risk Insurance Act Gains Overwhelming Industry Support
November 5, 2021
The event and hospitality industries are rallying behind a new bill that would help restore communicable disease coverage within event cancellation insurance and keep jobs and businesses protected during future pandemics and public health emergencies. Reintroduced in Congress on Nov. 2 by U.S. Rep. Carolyn B. Maloney (D-NY), the Pandemic Risk Insurance Act of 2021 (PRIA), a version of which she first proposed in May 2020 in response to the COVID-19 pandemic, is music to the ears of those in industries still reeling from billions in pandemic-related financial losses.
If passed, the bill would require insurance companies to offer business interruption and event cancellation policies that cover pandemics as well as create a Pandemic Risk Reinsurance Program to ensure that there is sufficient capacity to cover the losses and protect the economy in the event of a resurgence of COVID-19 or future pandemics. Under the bill, the federal government would serve as a backstop to maintain marketplace stability and to share the burden alongside private industry.
In a letter of support to Maloney, David Audrain and David DuBois, co-presidents of the Exhibitions and Conferences Alliance (ECA), a coalition dedicated to the recovery and advancement of face-to-face business events, outlined the toll the pandemic has taken and the impact the bill could have on the industry and the economy overall.
“Prior to the pandemic, our industry contributed $396 billion annually to U.S. gross domestic product and supported 6.6 million jobs, including $22.1 billion in economic impact,” they said. “Unfortunately, our industry continues to be devastated by the ongoing COVID-19 pandemic.”
Audrain and DuBois pointed to recent research, which found that as of June 30, 2021, the business-to-business events sector was still down 78.5% from pre-pandemic levels, adding that one critical factor slowing the return of face-to-face business events is the inability for the community to obtain communicable disease coverage for future pandemics as part of their event cancellation insurance.
“With expenses for business events starting to accrue one year or more in advance, many organizers are financially unable to take on the risk of putting on uninsurable events,” they said. “This disruption in the insurance market is significantly limiting our industry’s ability to bring back events and jobs, which impedes both our industry’s recovery and our ability to support the small businesses who rely on our events to nurture, cultivate and grow their businesses.”
Audrain and DuBois added that the PRIA legislation would help remedy the current collapse in the event cancellation insurance market by establishing a public-private backstop that ensures the industry, and the U.S. economy more broadly, is properly protected against pandemic-related risk going forward.
“PRIA will help us bring back jobs, jumpstart our industry’s recovery and support countless small businesses and non-profit organizations as they bounce back from the devastation of COVID-19,” they said.
The American Society of Association Executives (ASAE), which has called for a pandemic risk insurance solution since March 2020, was also quick to offer support for PRIA.
“PRIA’s coverage for event cancellation is especially critical to our association community, whose lifeblood courses from in-person events of all sizes and scope,” said ASAE President and CEO Michelle Mason. “ASAE thanks and applauds Rep. Maloney for introducing this important bill, which will no doubt help provide associations with the security they need to fully reignite our community’s far-reaching economic impact through industry-focused conferences and events, among other crucial services.”
Maloney thanked ASAE for its support of PRIA and for working with her to move the important solution forward.
“Millions of small businesses, nonprofits, associations and event companies across the country were left in the cold during the coronavirus pandemic through no fault of their own,” Maloney said. “A public-private framework would ensure our insurance markets serve these businesses in the next pandemic, and I am proud to sponsor the Pandemic Risk Insurance Act to provide these important protections.”
Other officials throughout the event and hospitality sectors also applauded Maloney and endorsed the proposed PRIA legislation, urging bipartisan support for the bill.
“The Pandemic Risk Insurance Act of 2021 … will ensure our industry’s ability to organize events in the future,” said Hervé Sedky, board chair of ECA and president and CEO of Emerald. “This would help us bring back jobs, accelerate our road to recovery and support the countless small businesses who rely on face-to-face business events going forward.”
Also endorsing the bill is the U.S. Travel Association, which recently gathered in Washington, D.C., with a broad alliance of industry representatives under its Let's Meet There initiative to call for the full return of business travel and events.
“It’s clear that without significant reforms to the business interruption and event cancellation insurance markets, travel businesses will not be able to get the type of coverage they need to reduce economic uncertainty and build a stable path to recovery,” said Tori Barnes, U.S. Travel’s executive vice president of public affairs and policy. “The sooner we stabilize the market for pandemic risk insurance, the sooner travel businesses can get back to business.”
Meanwhile, Chip Rogers, president and CEO of the American Hotel and Lodging Association, said the legislation would help ensure that America’s hard-hit travel industry has a critical safety net in the event of a future pandemic.
“Had this bill been law before COVID-19, hotel owners could have purchased affordable insurance that would have helped keep thousands of workers employed and offset the billions in economic losses hotels have experienced since,” he said. “COVID-19 is the worst economic event in the history of the American lodging industry, and this bill would provide crucial protection for hotel employees and small business owners if our nation ever faces another pandemic.”
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Partner Voices
Less than six months ago, Lisa Messina joined the Las Vegas Convention and Visitors Authority (LVCVA) as the first-ever chief sales officer after leading the sales team at Caesars Entertainment. A 12-year Las Vegas resident, Messina is a graduate of Cornell University’s School of Hotel Administration and serves on MPI International’s board of directors.
TSNN had a chance to catch up with this dynamic leader and talk to her about her vision for the new role, current shifts in the trade show industry, creating more diversity and equity within the organization, and advice to future female leaders.
Lisa Messina, Chief Sales Officer, LVCVA
With Las Vegas becoming The Greatest Arena on EarthTM, what are some of the things you’re most excited about in your role?
Our team was at The Big Game’s handoff ceremony earlier this month, and I couldn’t help but think, “We’re going to crush it next year!”
These high-profile events and venues not only drive excitement, but also provide unmatched opportunities for event planners. Allegiant Stadium hosts events from 10 to 65,000 people and offers on-field experiences. Formula 1 Grand Prix will take place in Las Vegas in November, after the year-one F1 race, the four-story paddock building will be available for buyouts and will also offer daily ride-along experiences that will be available for groups. And, of course, the MSG Sphere officially announced that it will open in September, ahead of schedule, with a U2 residency. It’s going to be the most technologically advanced venue as far as lighting, sound, feel, and even scent, and it will be available for buyouts and next-level sponsorships inside and outside. There’s no ceiling to what you can do when you’re doing events in Las Vegas.
Allegiant Stadium
As the trade show and convention business returns to the pre-pandemic levels, what shifts are you noticing and how do you think they will impact the industry going forward?
Our trade show organizers are very focused on driving customer experience. Most of our organizers are reporting stronger exhibitor numbers and increased numbers of new exhibitors, with trade shows proving to be almost or above 2019 levels. Now our organizers are really doubling down on driving attendance and focusing on the data to provide that individualized, customized experience to help attendees meet their goals and get the best value. Some companies continue to be cautiously optimistic with their organizational spend when it comes to sending attendees, but I think it will continue to improve. As the U.S. Travel Association makes more progress on the U.S. visa situation, we also expect a growing influx of international attendees.
What are some innovative ways the LVCVA helps trade show and convention organizers deliver the most value for their events?
We focus on customer experience in the same way that trade show organizers are thinking about it. We got rave reviews with the West Hall Expansion of the Las Vegas Convention Center (LVCC), so over the next two years, we will be renovating the North and the Central halls, which will include not just the same look and feel, but also the digital experiences that can be leveraged for branding and sponsorship opportunities.
Vegas Loop, the underground transportation system designed by The Boring Company, is also a way we have enhanced the customer experience. Vegas Loop at the LVCC has transported more than 900,000 convention attendees across the campus since its 2021 launch. Last summer, Resorts World and The Boring Company opened the first resort stop at the Resorts World Las Vegas , with plans to expand throughout the resort corridor, including downtown Las Vegas, Allegiant Stadium and Harry Reid International Airport. The LVCVA also purchased the Las Vegas Monorail in 2020, the 3.9-mile-long elevated transportation system that connects eight resorts directly to the convention center campus. This is the only rail system in the world that integrates fares directly into show badges and registration. For trade show organizers, these transportation options mean saving time, money and effort when it comes to moving groups from the hotels to LVCC and around the city.
Also, the more we can focus on building the infrastructure around the convention center, the more it supports the customer experience and ultimately supports our trade show organizers. Scheduled to debut in Q4, Fontainebleau Las Vegas will offer 3,700 hotel rooms and 550,000 square feet of meeting and convention space next to LVCC.
What are some of the plans for advancing DEI (diversity, equity and inclusion) within your organization?
We’re currently partnering with instead of working with a leading consulting firm, to lay the foundation and create a solid DEI plan and be the leader when it comes to DEI initiatives. The heart of that journey with the consulting firm is also talking to our customers about their strategic approaches to DEI and driving innovation in this space.
What are your favorite ways to recharge?
My husband and I have an RV and we’re outdoorsy people. So, while we have over 150,000 world-class hotel rooms and renowned restaurants right outside our doorstep, one of my favorite things to do is get out to Red Rock Canyon, the Valley of Fire, and Lake Mead. Five of the top national parks are within a three-hour drive from Las Vegas, so there’s a lot you can do. We love balancing the energy of Las Vegas with nature, and we’re noticing that a lot of attendees add activities off the Strip when they come here.
Valley of Fire
What advice would you give to women following leadership paths in destination marketing?
I think it’s about being laser-focused on what you want to accomplish; building a team around you that lifts you and helps you achieve your goals; and being humble and realizing that you do it as a group. No one gets this done alone. Thankfully, there are a lot of women in leadership in this organization, in our customers’ organizations, and in this city that we can be really proud of. We’re a formidable force that is making things happen.
This interview has been edited and condensed.
This article is exclusively sponsored by the Las Vegas Convention & Visitors Authority. For more information, visit HERE.
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