Lloyd & # 39 ;s London and technology company Parsyl Inc. on Tuesday launched a global health risk facility with 14 reinsurers and insurers to cover the distribution of COVID-19 vaccines, after securing a $ 26.7 million loan from US International Development Finance Corp.
With the DFC loan, Parsyl & # 39 ;s Syndicate 1796 will start trading on January 1 and already quotes coverage for COVID-19 vaccine shipments to developing countries, says Ben Hubbard, CEO of Parsyl in an interview with Business Insurance [
The public-private initiative is supported by the insurance companies Ascot Underwriting Ltd., Axa XL, Beazley PLC, Chubb Ltd., Talbot Underwriting Ltd., QBE, Tokio Marine Kiln and Aegis, Lloyd & # 39; s and Parsyl said in a joint statement.
Reinsurers to Syndicate 1
McGill and Partners acted as reinsurance brokers
The facility is based on a risk-sharing model where Syndicate 1796, with the DFC loan and reinsurance support, can provide up to a 50% line on a risk, with existing Lloyd's cargo market sharing. the remaining 50%, Hubbard said.
The DFC loan enables the facility to offer cost-effective insurance for the storage and transit of life-saving medical supplies such as temperature-sensitive vaccines and drugs, diagnostics, personal protective equipment and associated cold chain equipment, said Lloyd & # 39 ;s and Parsyl.
Coverage via Syndicate 1796 is currently only available for low, lower and middle income countries. Political limits are up to $ 20 million per territory with higher limit options available on a surplus if needed. ] Qualified policyholders include private manufacturers, health ministries, public health authorities, procurement agents, logistics companies and local market insurance companies (via reinsurance).
A risk management accelerator (RMA), funded separately by participating syndicates and donors and supported by Axa XL's risk consulting services, will provide services and risk reduction services to strengthen the vaccine supply chain, the statement said. most, "Hubbard said in the statement.
Lloyds CEO John Neal said in the statement: "As the world prepares to undergo the largest vaccination program in human history, it is essential to ensure the safe and effective distribution of the vaccine to address this global health condition." Catalog