Introduction of a parametric pandemic insurance policy

Insurance and reinsurance broker Gallagher is launching a parametric insurance product on the Indian market to cover business losses related to pandemic or epidemic outbreaks.

The new coverage is issued by New India Assurance and reinsured by the German group Munich Re.

The Indian group Phoenix Mills is the first insured of this policy. The coverage protects Phoenix Mills' various business sectors (malls, hotels, and office assets) against any losses related to business interruptions due to a major unforeseen health crisis.

The solution is based on a parametric model: reimbursement is triggered automatically as soon as a predefined indicator (infection rate or government measure) is reached.