Munich Re is a market maker for epidemic and pandemic risk insurance. With more than 130 years of expertise in evaluating and quantifying risks of any kind globally, Munich Re is one of the world’s leading reinsurers. The team of Epidemic Risk Solutions provides tailor-made solutions across all lines of business, protecting clients and their balance sheets against the consequences of an epidemic outbreak. This includes the coverage of delay in start-up, business interruption and extraction of workforce caused by infectious diseases onsite or offsite. We also participate in various public/private partnerships aiming to strengthen a society’s resilience against epidemics. Epidemic Risk Solutions can also accompany client’s business expansion to Africa or other emerging markets – making investments better plannable and mitigating the risk of project default.
As the potential magnitude of economic losses caused by global pandemics exceeds the risk bearing capacity of the insurance industry, epidemic/pandemic insurance is a structured solution that requires the transformation of risk in order to offer significant capacity to the marketplace. A key element of being able to offer such solutions is the creation of an Epidemic Risk Markets platform which, unnoticed by the insured, enables a wider participation of capacity providers, including capital market investors – thus establishing pandemic investment as an asset class.