Munich R Specialty – Global Markets, Syndicate Announces Launch of Pandemic Consortiumfor , for , for , . Lloyd’s go-to-market initiative will focus on offering a parametrically dynamic catastrophic communicable disease insurance offering.
The consortium will offer a proactive emerging risk transfer solution to mitigate against the impact of pandemic and epidemic risks.
Many businesses do not have insurance policies against this risk and face the protection gap without a solution provided by a consortium. This is despite modeling experts such as MetaBeta (now called Ginkgo BioWorks) and Airfinity predicting another pandemic approaching the scale of Covid-19 in the next 10 years.
Coverage can be triggered by three objective data points:
- who report new outbreaks,
- who declare a public health emergency, and
- Civil authority restrictions are issued in respect of the disease in a covered area.
Munich RE said the consortium will benefit from the experience and expertise of Munich RE’s Epidemic Risk Solutions Unit (ERS), based in London.
The ERS unit, which has been underwriting risks since 2017 and is represented in London, Munich and Singapore, will provide expertise, collective guidance and underwriting rigor to the new consortium, allowing consortium partners to collaboratively offer solutions to potentially catastrophic future outbreaks, Münchr said.
“Although Covid-19 remains a vivid memory for many, the risk of future pandemics and pandemics is high globally. This innovative insurance solution, developed with the help of our partners, is designed to help prepare for and respond to these risks,” Dominique Hoover, Group Chief Underwriting Officer, Munich Re Spacial-Global Markets, said in a statement.
“Once these incentives met, its transparent incentives and speedy payouts show how the insurance industry can provide effective solutions to help the economy stay on track amid public health disruptions,” Hoover added.
In addition to protecting businesses, the Pandemic Consortium will also be relevant at the national level. A recently published report by the G20 High Level Independent Panel on Global Commons Financing for Pandemic Preparedness and Response recommends significantly expanding business interruption insurance to improve economic stability and free up government resources for pandemic preparedness and response.
“The Munich RERS team is proud to support Epidemiologists with our long-standing expertise and knowledge in epidemiology and epidemic risk.” “Enhancing the access and distribution of this expertise through the syndicate’s consortium partners will help businesses better plan and prepare for future risks – while at the same time enabling a sustainable approach to managing the overall capacity for this challenging risk.”
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