Marsh, Munich Re launch parametric pandemic cover

Marsh has launched an insurance product designed to protect businesses against pandemic risks such as the outbreak of infectious diseases, that utilises a parametric trigger provided by epidemic risk modelling specialists Metabiota and capacity from reinsurance giant Munich Re.

The impact of infectious disease outbreaks and other pandemics can be significant for businesses, ranging from direct impacts to extensive business interruption, which makes a parametric triggered event definition and risk transfer solution, backed by global reinsurance capacity a valuable product for corporate risk managers.

Of course this also meets the mandate of the major reinsurers such as Munich Re, bringing their reinsurance risk capital direct to the corporate market through such arrangements, while also helping to narrow an evident gap in traditional re/insurance protection.

Marsh said the solution can help to minimise financial losses caused by the outbreak of pandemics, citing the product as the “world’s first integrated risk solution for measuring and protecting against economic impact of infectious disease outbreaks.”

The insurance product will be offered to US-based companies, but can also protect their global operations as well.