Lloyd’s of London has provisionally approved the creation of a new syndicate designed to insure the storage and transportation of a Covid-19 vaccine to emerging economies.
Parsyl, an insurance technology company and Lloyd’s Lab alumni, developed Syndicate 1796 in close partnership with Ascot as managing agent, and in cooperation with AXA XL, McGill and Partners and Gavi, the Vaccine Alliance, a public–private global health partnership that works to increase access to immunisation in poor countries.
Syndicate 1796 forms the foundation of the new Global Health Risk Facility (GHRF) at Lloyd’s, which aims to provide comprehensive insurance and risk mitigation services to support the manufacturing and distribution of Covid-19 vaccine development efforts. It aims to start writing business from 1 October.
In the GHRF, Syndicate 1796 will be backed by development finance capital, allowing it to share risks with leading cargo syndicates, making better, fairly priced cargo coverage available.
The GHRF will offer ‘all risk’ cargo coverage for transit and storage risks on all global health products related to Covid-19 and any other infectious disease control and prevention programmes.
The creation of a public-private syndicate to address a global health emergency is the first in the 330-year history of Lloyd’s.
Led by Ascot, the GHRF will take a portfolio approach, focusing primarily on global distribution of products to low income countries supported by global public health agencies, such as Gavi, the Global Fund to Fight AIDS, TB and Malaria, PEPFAR and UNICEF.
The GHRF will also offer coverage via direct insurance or reinsurance, for in-country distribution risks to ensure vaccines and other commodities are protected as they are stored in central warehouses and travel through health systems.
Eligible insureds will include private manufacturers, procurement agents, logistics companies, ministries of health and other public agencies supporting the distribution of Covid-19 vaccines and other lifesaving products to low income countries.
John Neal, chief executive officer of Lloyd’s of London, said: “There is broad consensus that life can only return to normality after a vaccine is developed, distributed and administered around the world. Lloyd’s has an important role to play in insuring the many risks associated with this global medical response and we are delighted to approve a new innovative syndicate that will provide effective cover for local vaccine distribution supply chains.”
“This unique partnership is a real demonstration of the value and ingenuity the Lloyd’s market can bring to help address a global health emergency, as we share risk to support the brave efforts of those racing to develop and distribute a Covid-19 vaccine.”