In an increasingly interconnected world, the COVID-19 pandemic has reinforced the critical need for better preparedness against future global health crises.
While the immediate focus during a pandemic is the protection of public health, and maintaining healthcare systems, the financial repercussions can be just as devastating. It is estimated that the financial impact of COVID-19 is in excess of $13,000bn.
In the UK Government Risk Register published in August 2023, it was stated that a future pandemic is the most likely and most catastrophic risk to the UK in the next 5 years. Indeed, two separate organisations, Metabiota and Airfinity, have both estimated a 28% probability of another pandemic occurring within the next 10 years that could be as severe or worse than COVID-19.
Both organisations base their estimates on an analysis of historical data, ongoing changes in human interaction with the environment, wild animals and the increasing likelihood of zoonotic** spillovers alongside the potential for rapid global spread due to our highly interconnected world.
** Zoonotic diseases are infections that are spread between people and animals
MPOX and the Next Pandemic
The World Health Organisation’s announcement of the upsurge of Mpox in Africa in 2024 as being a PHEIC (Public Health Emergency of International Concern) reminds us of how vulnerable we are to outbreaks spreading globally and future pandemics. This is a ‘when not if’ scenario and an insurance solution is available.
Since 2001 we have had several global infectious disease emergencies, SARS, the 2009 influenza pandemic (H1N1) ‘swine flu’, Zika, Ebola, COVID-19 pandemic, the 2022 MonkeyPox outbreak and now Mpox again, and it is clear there will be more.
We feel it is imperative to make everyone aware of the need for a measured and informed decision on their future financial protection with the understanding that specific Pandemic Insurance is available.
The Emergence of Pandemic Insurance and How It Works
It is highly unlikely the same level of Government support (if any) will be available in the next pandemic, so it is essential organisations consider the need for insurance cover, even if it is just a very low level, to cover their fixed costs, unexpected extra expenses and the servicing of any banking arrangements they need to make an allowance for.
Unlike traditional insurance, which pays out based on actual losses incurred, Pandemic Insurance provides payouts based on predefined triggers, such as the declaration of a PHEIC by the World Health Organisation (WHO) dovetailed with Civil Authority restrictions (not necessarily a full lockdown).
This model allows the Policyholder to set a limit required to ‘keep the lights on’ in the event of a pandemic and receive faster payouts through a simpler claims process. InEvexco have been working closely with a specialist Insurer to deliver suitable cover to meet what is an undeniable need. Cover is available currently on either a ‘ground up’ basis or a lower cost option with a selfinsured sum (excess layer).
For more information, please contact
Mark Blair
Divisional Director of InEvexco
T: +44 (0) 7834 158074
E:mark.blair@inevexco.co.uk
