COVID-19 vaccine insurance facility launched at Lloyd’s

Lloyd’s of London on Wednesday said it has given preliminary approval to a syndicate that will offer coverage for COVID-19 vaccine shipments.

Syndicate 1796 will operate as a “syndicate in a box,” which does not require a physical presence at Lloyd’s. It was developed by technology company Parsyl Inc., and it will be managed by Ascot Underwriting Ltd., a Lloyd’s statement said.

“The Syndicate forms the foundation of the new Global Health Risk Facility at Lloyd’s, which aims to provide comprehensive insurance and risk mitigation services to support the manufacturing and distribution of COVID-19 vaccine development efforts,” the statement said.

The facility, which is expected to start writing business on Oct. 1, will focus on vaccine distribution supported by public health agencies to low-income countries, the statement said.

Lloyd’s did not respond to a request for information on policy limits.

Other companies involved in the project include Axa XL, a unit of Axa SA, broker McGill and Partners, and Gavi, a public-private partnership that provides vaccination resources.

More insurance and risk management news on the coronavirus crisis here.