Insurance broker and professional services firm Aon has brought together a consortium of underwriters and tech firms to address the challenges of transporting temperature-sensitive Covid-19 vaccines.
The new offering combines sensor data and analytics with transparent cargo insurance coverage for Covid-19 vaccines, which will allow insurers to pay out on doses that fall outside of the agreed-upon temperature range while being transported or stored, enabling more effective risk management and claims support.
“Aon has been working on client solutions utilising sensor technology in the supply chain for several years,” says Lee Meyrick, CEO of global marine, commercial risk solutions at Aon. “Recognising the concerns faced with the global distribution of Covid-19 vaccines, we explored the development of a new solution to provide financial protection to the companies involved in the distribution process. Working with leaders in the industry, we were quickly able to build out a group of like-minded insurers that are willing to underwrite the risks using verifiable and effective sensor technologies.”
The solution doesn’t mandate the use of specific internet of things (IoT) platforms or sensor devices, but instead gives insured companies – which range from pharmaceutical firms to government bodies, transportation and logistics companies, distributors, health systems, pharmacy chains and inoculation centres – the option to access them on a complimentary basis during 2021.
The industry collaboration includes insurtech firm Parsyl, which will serve as the dedicated data platform for the solution on behalf of the insurers, and specialist underwriter Ascot Group acting as the lead underwriter. Binding insurers are Chubb European Group SE and AIG, with reinsurance support from Munich Re. Other insurers include Aegis London, Antares Managing Agency, AXA XL, Axis Insurance, Beazley, Fidelis, MS Amlin and Talbot.
Also involved are ChronosCloud, which is enabling access to its cloud-based platform to connect all parties with real-time IoT sensors for active condition monitoring; Intel, which is providing secure computing platforms; Mastercard, which is bringing in its blockchain-based provenance solution to track shipments in real time, and Sensitech, which has donated access to devices as part of the risk management solution.
This follows the recent launch by Parsyl of the Global Health Risk Facility (GHRF). Focused on providing cost-effective insurance for shipments of vaccines in emerging markets, the GHRF is a public-private collaboration of 14 global insurers and reinsurers as well as the US International Development Finance Corporation. According to Ben Hubbard, Parsyl’s CEO, this latest Aon-led collaboration will build on the GHRF’s progress, enabling the mitigation of losses across the global vaccine supply chain.
“It’s critical that we deliver potent Covid-19 vaccines to everyone, everywhere. To do that, we must collect data to understand what happens to these sensitive shipments as they make their journey from factory to syringe,” says Hubbard. “This insurance solution will help complement existing industry efforts focused on developing countries by providing protection for vaccine supply chains in additional markets. We’re proud to be enabling another insurance solution and contributing to effective vaccine distribution around the world.”
Aon says it will donate 100% of all revenues earned from this new solution in 2021 to charity.