Lloyd’s of London and Parsyl, a supply chain data platform and cargo insurer for shippers of sensitive goods, have jointly launched an alliance of insurance and technology partners called Global Health Risk Facility (GHRF).
In a release, Lloyd’s said GHRF will make available not only billions of dollars of insurance coverage but also risk mitigation services designed to support the global distribution of COVID-19 vaccines and critical health commodities.
The facility is supported by the US government’s development finance institution DFC (United States International Development Finance Corporation) through an approved loan of up to US$26.7 million, which will capitalise public-private partnership Syndicate 1796 and allow GHRF to offer cost-effective insurance policies for shipments of vaccines to developing countries.
GHRF and Syndicate 1796 were developed by Parsyl in close partnership with managing agent Ascot Underwriting and in cooperation with AXA XL, McGill and Partners, and Lloyd’s. Among the participating insurers are Beazley, Chubb, Talbot, QBE, Tokio Marine Kiln, and Aegis.
Meanwhile, reinsurers to Syndicate 1796 – which will begin underwriting in the New Year – include Convex, Canopius, Hamilton, and RenaissanceRe, with McGill and Partners serving as the broker on the placements. All business for GHRF will be originated through Parsyl Insurance, a Lloyd’s coverholder, and the facility is open to all brokers with eligible business.
“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,” noted Lloyd’s.
“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 RMA will fund a range of services, including conducting surveys of storage locations, supply chain risk evaluations, and technology-enabled data collection.”
Lloyd’s chief executive John Neal said ensuring the safe and effective distribution of COVID-19 vaccines, as the world prepares to undergo the biggest vaccination programme in human history, is critically important in tackling the global crisis.
He commented: “We are thrilled to be launching the Global Health Risk Facility at Lloyd’s – a fantastic example of the way in which our global insurance market has come together to deliver an innovative new solution and model for solving complex global risk challenges posed by the pandemic.”
“Launching an undertaking with such broad scale and scope couldn’t have happened without the expertise and dedication of this incredible cross-industry group of public and private partners,” added Parsyl CEO Ben Hubbard. “It’s now time to vaccinate the world and we’re so proud to be contributing to this monumental global effort.”