For global client programs it is critical to consider all local operations and how policies may or may not include Covid-19 coverage.
Non-concurrent language – besides the obvious problems with claims coverage, non-concurrent language may cause issues with the recognition of erosion of underlying limits and drop down in limits. It is crucial that wording is consistent throughout the tower; where differences are unavoidable recognition of underlying erosion should be addressed.
Non-concurrence in language may also cause structural issues if insurers apply Covid-19 related per patient SIRs and split retentions (higher Covid-19 retentions).
Treatment for patients – trying to maintain coverage for treatment of patients with Covid-19 should be a key point of discussion. Not all wording iterations specify that this coverage is maintained, some endorsements have grey areas that may be misapplied to treatment of Covid-19 patients.
Structural considerations – be aware of structural limitations that insurers are using or may use in the future: per patient retentions, higher Covid-specific retentions and/or sublimits.
Coverage parts – ensure clarity on which coverage part the exclusion applies to. Be exceptionally careful when language is embedded into reinsurance of captives to ensure that the language utilized is applied appropriately to the relevant coverage part.