Lloyd’s has unveiled a number of ways the insurance industry could fast-track global economic and societal recovery from the impacts of COVID-19.
These include three open source frameworks namely ReStart, Recover Re and Black Swan Re. They are freely available for application around the world, two of which require government and (re)insurance industry partnerships.
If implemented, these frameworks could provide customer protection for further waves of COVID-19 (ReStart and Recover Re) and other future pandemics as well as strengthening societal resilience against future systemic catastrophic events (Black Swan Re).
The solutions and frameworks, developed in conjunction with Lloyd’s UK and global advisory groups are detailed in its ‘Supporting global recovery and resilience for customers and economies: the insurance response to COVID-19’ report published today.
Following interviews with executives and experts across major global industries, the proposals seek to address short, medium and long-term challenges customers face as they begin to recover and reopen.
The proposals include solutions for the reopening of businesses against the threat of further waves of COVID-19, preparation and protection for the next systemic catastrophic event as well as building greater resilience across global supply chains and the digital economy.
According to Lloyd’s chairman Bruce Carnegie-Brown, the launch of the report, frameworks and solutions within follow Lloyd’s confirmation on 14 May that the market will pay out in the range of $3bn to $4.3bn to its global customers as a result of COVID-19 impacts.
“COVID-19 has demonstrated that there is much more we can do to support our customers by providing protection for the changing risks they face. Some of these risks are of a scale that require partnership with governments globally and this report identifies ways in which the insurance industry could work with governments to share risk and create a braver, more resilient world,” he said.