(Reuters) â Speedy global delivery of COVID-19 vaccines by air and sea in ultra-cold conditions will lead to a jump in cargo insurance rates and spur demand for new areas of coverage, leaving underwriters on high alert.
Pharmaceutical companies normally manage the risks of transporting their products through buying insurance or relying on an in-house insurer, a captive insurer.
But as Pfizer Inc. and other drugmakers start to roll out vaccines more broadly, existing company-wide annual cargo insurance programs are likely to be insufficient, industry sources say.
âWhere manufacturers or logistics providers see gaps in their coverages, they may look to the insurance markets to plug those gaps,â said Charlie Netherton at broker Marsh.
COVID Vaccine Rollout Spurs Demand for Extra Insurance Coverage December 18, 2020
LONDON – Speedy global delivery of COVID-19 vaccines by air and sea in ultra cold conditions will lead to a jump in cargo insurance rates and spur demand for new areas of coverage, leaving underwriters on high alert.
Pharmaceutical companies normally manage the risks of transporting their products through buying insurance or relying on an in-house insurer, known as a “captive” insurer.
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But as Pfizer Inc. and other drugmakers start to roll out vaccines more broadly, existing company-wide annual cargo insurance programs are likely to be insufficient, industry sources say.
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Insurers, Drugmakers Sail Into Unknown With COVID Vaccine Rollout
Pharmaceutical companies normally manage the risks of transporting their products through buying insurance or relying on an in-house insurer, known as a captive insurer.
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Speedy global delivery of COVID-19 vaccines by air and sea in ultra cold conditions will lead to a jump in cargo insurance rates and spur demand for new areas of coverage, leaving underwriters on high alert.
Pharmaceutical companies normally manage the risks of transporting their products through buying insurance or relying on an in-house insurer, known as a captive insurer.
But as Pfizer Inc and other drugmakers start to roll out vaccines more broadly, existing company-wide annual cargo insurance programmes are likely to be insufficient, industry sources say.
Analysis: Insurers, drugmakers sail into unknown with COVID vaccine rollout Jonathan Saul ,
By Jonathan Saul and Carolyn Cohn
LONDON (Reuters) - Speedy global delivery of COVID-19 vaccines by air and sea in ultra cold conditions will lead to a jump in cargo insurance rates and spur demand for new areas of coverage, leaving underwriters on high alert.
Pharmaceutical companies normally manage the risks of transporting their products through buying insurance or relying on an in-house insurer, known as a captive insurer.
But as Pfizer Inc and other drugmakers start to roll out vaccines more broadly, existing company-wide annual cargo insurance programmes are likely to be insufficient, industry sources say.
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