Munich Re Unveils Pandemic Consortium Through Lloyd’s Market

Munich Re Specialty – Global Markets, Syndicate has announced the launch of The Pandemic Consortium, a groundbreaking initiative within the Lloyd’s market aimed at providing parametrically triggered catastrophic communicable disease insurance.

This consortium is designed to offer a proactive solution for emerging risks, specifically targeting the impacts of pandemics and epidemics. Many businesses currently lack coverage for these risks in their insurance policies, leaving them vulnerable to significant financial losses. This protection gap is particularly concerning given predictions from modeling experts like Metabiota (now part of Ginkgo Bioworks) and Airfinity, who estimate a nearly one-in-three chance of another pandemic on the scale of COVID-19 occurring within the next decade.

The coverage provided by The Pandemic Consortium can be triggered by three specific data points:

• A new outbreak reported by the WHO,
• A public health emergency declared by the WHO, and
• Issuance of civil authority restrictions related to the disease within a covered area.

Based in London, the consortium will leverage the extensive experience and expertise of Munich Re’s Epidemic Risk Solutions unit (ERS). This unit has been actively writing risk since 2017 and has a presence in London, Munich, and Singapore. Their involvement will provide essential expertise, aggregation guidance, and underwriting rigor, enabling consortium partners to collaboratively address potential catastrophic outbreaks in the future.

“While COVID-19 remains a vivid memory for many, the risk of future pandemics and epidemics globally remains high. This innovative insurance solution, developed with the support of our partners, is designed to help businesses better prepare for and respond to these risks,” stated Dominick Hoare, group chief underwriting officer at Munich Re Specialty – Global Markets.

He further emphasized, “Its transparent triggers and rapid payouts once these triggers are met demonstrate how the insurance industry can proactively deliver effective solutions to help the economy stay on track amidst public health disruptions.”

The Pandemic Consortium is not only beneficial for individual businesses but also holds significance at a national level. A recent report by the G20 High Level Independent Panel on Financing the Global Commons for Pandemic Preparedness and Response recommends a substantial expansion of business interruption insurance to enhance economic stability and free up government resources for pandemic preparedness and response.

Dr. Gunther Kraut, global head of Epidemic Risk Solutions at Munich Re, expressed pride in supporting The Pandemic Consortium. “Expanding the reach 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 aggregate capacity for this challenging risk,” he stated.

Topics
Excess Surplus
New Markets
Lloyd’s

Munich Re Specialty – Global Markets, Syndicate has announced the launch of The Pandemic Consortium, a groundbreaking initiative within the Lloyd’s market aimed at providing parametrically triggered catastrophic communicable disease insurance.

This consortium is designed to offer a proactive solution for emerging risks, specifically targeting the impacts of pandemics and epidemics. Many businesses currently lack coverage for these risks in their insurance policies, leaving them vulnerable to significant financial losses. This protection gap is particularly concerning given predictions from modeling experts like Metabiota (now part of Ginkgo Bioworks) and Airfinity, who estimate a nearly one-in-three chance of another pandemic on the scale of COVID-19 occurring within the next decade.

The coverage provided by The Pandemic Consortium can be triggered by three specific data points:

• A new outbreak reported by the WHO,
• A public health emergency declared by the WHO, and
• Issuance of civil authority restrictions related to the disease within a covered area.

Based in London, the consortium will leverage the extensive experience and expertise of Munich Re’s Epidemic Risk Solutions unit (ERS). This unit has been actively writing risk since 2017 and has a presence in London, Munich, and Singapore. Their involvement will provide essential expertise, aggregation guidance, and underwriting rigor, enabling consortium partners to collaboratively address potential catastrophic outbreaks in the future.

“While COVID-19 remains a vivid memory for many, the risk of future pandemics and epidemics globally remains high. This innovative insurance solution, developed with the support of our partners, is designed to help businesses better prepare for and respond to these risks,” stated Dominick Hoare, group chief underwriting officer at Munich Re Specialty – Global Markets.

He further emphasized, “Its transparent triggers and rapid payouts once these triggers are met demonstrate how the insurance industry can proactively deliver effective solutions to help the economy stay on track amidst public health disruptions.”

The Pandemic Consortium is not only beneficial for individual businesses but also holds significance at a national level. A recent report by the G20 High Level Independent Panel on Financing the Global Commons for Pandemic Preparedness and Response recommends a substantial expansion of business interruption insurance to enhance economic stability and free up government resources for pandemic preparedness and response.

Dr. Gunther Kraut, global head of Epidemic Risk Solutions at Munich Re, expressed pride in supporting The Pandemic Consortium. “Expanding the reach 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 aggregate capacity for this challenging risk,” he stated.

Topics
Excess Surplus
New Markets
Lloyd’s