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Lloyd’s of London to insure Covid vaccine shipments
[LONDON] Lloyd's of London, the world's largest insurance market, plans to begin offering coverage for the delivery of coronavirus vaccines.
Parsyl, a US cargo insurance specialist, has teamed up with Lloyd's to provide policies for shipping medical treatments including vaccines that require refrigeration, the Financial Times reported. Covid-19 tests could also be included.
Vaccine delivery can be expensive to insure because underwriters are concerned about the risk of medicines being spoiled by excessive heat or cold, according to the report. Freezing is a particular risk, with one study finding that 37 per cent of vaccines in low-income countries are exposed to temperatures below the recommended range.
The new Lloyd's business, known as a syndicate, has been developed by Parsyl together with insurers Ascot and a unit of AXA SA, as well as broker McGill & Partners, the FT said. It will be backed with US$25 million of capital. The business will also advise clients on improving their supply chains.
A representative of Lloyd's of London didn't respond to an emailed request for comment.