The London market has thrown its weight behind moves to create a new UK pandemic insurer of last resort.
The plans for “Pandemic Re” took a significant step forward with the announcement that the Steering Committee has created a Project Committee of six working groups each with its own dedicated Chair.
The working groups will focus on Customer Engagement and Distribution, Technical Insurance, Modelling and Data, Scheme Structure/Operating Models, Pandemic Preparedness and Mitigation, and finally Legal, Regulatory and Government Affairs.
Over 50 representatives from leading insurance brokers, insurers and reinsurers, management consultants, data modelers, the medical profession and academia have been allocated to work streams and a further 65 have volunteered their or their organisation’s help. The Corporation of Lloyd’s has agreed to provide resources to two of the work streams.
Stephen Catlin, (pic) Chairman, of the Steering Committee said: “The Steering Committee has made considerable progress by identifying working groups and business leaders to direct them as well as helping to determine the detailed activities for each work stream. I would like to thank all these volunteers for giving their time to this project.”
Michael Dawson, chairman of the project committee, added: “We have a significant task ahead although we have received enormous levels of industry support. The insurance industry is collaborative by nature and with this highly experienced group, we hope to be able to deliver a structure in a relatively short time frame.”
The moves have been welcomed by the London market including the International Underwriting Association which believes the solutions lies in the creation of a government-supported insurance solution for future pandemic events.
IUA chief executive Dave Matcham said: “We have been following closely discussions on a number of different possible approaches to providing cover for future losses from pandemic risks.
“I am pleased that Pandemic Re has been able to gain support for its work from many volunteers across our industry. Many IUA members are represented in the working groups that are being formed to examine different aspects of the issue and the association looks forward to providing additional support.
“This backing clearly demonstrates our sector’s commitment to helping mitigate risk and finding more effective recovery solutions.”