The massive marketplace is collaborating with insurtech Parsyl and others in this effort.
Lloyd’s of London and insurtech Parsyl have announced the launch of the new vaccine shipment insurance coverage initiative. Called Global Health Risk Facility (GHRF), it will provide coverage worth billions of dollars for COVID-19 vaccine distribution.
The coverage will be for the transportation of supplies related to the distribution of the inoculation.
The comprehensive vaccine shipment insurance initiative aims to cover supplies related to distribution, including the personal protective equipment and other materials needed for distribution. The GHRF’s initiative for covering the transit of these life-saving medical supplies shas the support of 14 global insurance and reinsurance companies. Among them include Aegis and Beazley, as well as the US International Development Finance Corp.
The global inoculation program will be the largest the world has ever attempted. The complexity and size of shipping the necessary supplies to all parts of the world formed a large insurance gap. By working together on such a large scale, they will shrink the critical coverage gap associated with distributing the vaccine worldwide. By collaborating on such a large scale, this gap can be meaningfully reduced.
The vaccine shipment insurance will also cover supply chain and distribution investments.
With this coverage, the hope is that it will expedite the availability of the vaccine around the world. By working with Parsyl, Lloyd’s of London has been able to benefit from the IoT sensors from the insurtech firm. This makes it possible to protect and monitor these critical shipments.
That said, the GHRF acknowledges that further partnerships will be required to make it possible for the insurance industry to make the necessary changes to close the other gaps in coverage connected with emerging risk.
A recent Business Insider report pointed to the prioritizing of the rising threat of coverage gaps caused by climate change, future pandemics, and other emerging risks. It also indicated that, as in the case with this vaccine shipment insurance, insurers will want to look to the acquisition or partnership with insurtechs to offer them expedited means for obtaining what is needed to address those growing gaps in coverage.