An alliance of insurance and technology partners will provide comprehensive insurance and risk mitigation services for the storage and transit of life-saving medical supplies such as temperature-sensitive vaccines and medicines, diagnostics, PPE and ancillary cold-chain equipment.
Called the ‘Global Health Risk Facility’ (GHRF), the programme has been launched by Lloyd’s of London and InsurTech firm Parsyl to make billions of dollars of insurance coverage available for the distribution of COVID-19 vaccines in emerging markets.
The facility is anchored by Syndicate 1796, which operates at Lloyd’s and will begin underwriting in January 2021. Syndicate 1796 is the first public-private partnership to address a global health emergency in Lloyd’s 330-year history.
“As the world prepares to undergo the largest vaccination programme in human history, ensuring the safe and effective distribution of the vaccine is critically important in tackling this global health emergency,” said Lloyd’s of London CEO John Neal.
He considered the GHRF as an example of how the global insurance market has come together to deliver an innovative solution and model for solving complex global risk challenges posed by the pandemic.
The launch of the GHRF includes support from the US International Development Finance Corporation (DFC) which has approved up to $26.7m for the facility.
The DFC loan will be used to capitalise the Syndicate 1796 and allow the GHRF to offer cost-effective insurance policies for shipments of vaccines and medical products to eligible low, lower-middle and upper-middle-income countries.
Parsyl and DFC are on track to finalise loan terms and documentation in the coming weeks.
The GHRF will protect the quality of the goods and the financial investments made to supply and distribute them at a global level.
A critical feature of the insurance platform will be the Risk Management Accelerator (RMA), which is separately funded by participating syndicates and donors and supported by the risk consulting services of AXA XL.
The RMA will provide funding and services to enable eligible GHRF clients to access better data and risk mitigation solutions which will strengthen the vaccine supply chain. The accelerator will fund a range of services, including conducting surveys of storage locations, supply chain risk evaluations and technology-enabled data collection.