LONDON (Reuters) - Lloyd's of London and Parsyl Inc. have launched a groundbreaking insurance initiative to protect and support the distribution of COVID-19 vaccines as a global vaccination programme to halt the deadly virus gathers pace.
The Global Health Risk Facility (GHRF), which comprises 14 insurers and reinsurers, has been set up to address the challenges of transporting temperature-sensitive vaccines, and will be supported by $26.7 million in funding from the U.S International Development Finance Corporation, the companies said on Tuesday.
The DFC loan will be used to capitalize the new public-private Syndicate 1796 and allow the GHRF to offer cost-effective insurance policies for shipments of vaccines and medical products to developing countries.
The facility will begin underwriting in January. Syndicate 1796 is the first public-private partnership to address a global health emergency in Lloyd's 330-year history.
"By unleashing the power of data, we're addressing a critical insurance gap when the world needs it most," Ben Hubbard, Chief Executive at Parsyl said.
"It’s now time to vaccinate the world and we’re so proud to be contributing to this monumental global effort.”