Airmic, the UK association for risk and insurance professionals, has welcomed Lloyd’s proposals for how the insurance industry can support global economic and societal recovery from the impacts of COVID-19.
Earlier this week, Lloyd’s laid out three open source frameworks designed to fast-track global economic and societal recovery from COVID-19, in collaboration with its UK and Global Advisory Groups.
“Lloyd’s proposals address the fact that businesses are facing very acute and immediate challenges from the impact of the global pandemic while also considering the medium and long-term insurance challenges that the pandemic has exposed,” Airmic said in a statement.
“We are very much at the beginning of the crisis, and businesses need practical support and insurance solutions for potential future waves and unexpected consequences of this virus and Lloyd’s has shown leadership in proposing practical solutions.”
Lloyd’s solutions include a non-damage business interruption solution called ReStart and an ‘after the event’ insurance product framework designed to provide immediate relief and cover for non-damage business interruption over the long-term, including the current pandemic.
Additionally, Lloyd’s proposed Black Swan Re as a reinsurance framework for government and industry partnership to better protect customers from the impacts of systemic catastrophic events.
“We welcome the fact that the report also looks beyond the pandemic and addresses the need to find a framework for coping with the devastating and long-term impacts of systemic catastrophic events,” Airmic continued.
“The proposed solutions are the product of broad thinking and extensive consultation with Lloyd’s customers, including those represented by Airmic, the insurance market and government,” the association added.
“This collaboration is welcomed as it is vital during such a far-reaching crisis. Only by working together will we emerge from the pandemic stronger, and Airmic is looking forward to working with Lloyd’s in turning this into a reality.”