Munich Re Specialty – Global Markets, the managing agent of Syndicate 457 at the Lloyd’s market, launched The Pandemic Consortium to provide parametric catastrophic communicable disease insurance.
The initiative targets pandemic and epidemic exposure through a structured, data-driven risk transfer approach.
The London-based consortium positions itself as an emerging risk solution aimed at mitigating economic disruption tied to large-scale disease outbreaks.
Coverage relies on objective, pre-defined triggers rather than loss adjustment, designed to support faster capital flow during public health crises.
Triggers activate under three defined conditions. The World Health Organization reports a new outbreak. The WHO declares a public health emergency.
Civil authorities impose disease-related restrictions within a covered territory. Once conditions align, payouts follow without claims disputes.
Munich Re said the product responds to a material protection gap affecting businesses worldwide. Many firms remain uninsured against pandemic risk under standard policies, leaving balance sheets exposed during systemic shutdowns.
Modeling firms such as Metabiota and Airfinity estimate close to a one-in-three probability of another COVID-scale pandemic within the next decade.
Dominick Hoare, group chief underwriting officer at Munich Re Specialty – Global Markets, said pandemic risk remains elevated despite fading memories of COVID-19. He said transparent triggers and rapid payout mechanics show how insurance supports economic continuity during public health shocks.
The consortium draws underwriting support from Munich Re’s Epidemic Risk Solutions unit, operating across London, Munich, and Singapore.
The unit has written epidemic-related risk since 2017 and contributes modeling insight, aggregation controls, and underwriting discipline.
Dr. Gunther Kraut, global head of epidemic risk solutions at Munich Re, said expanding access to epidemic expertise through a Lloyd’s consortium structure helps businesses prepare while keeping aggregate exposure manageable.
He described sustainable capacity management as essential given the scale and correlation of pandemic risk.
The Munich Re ERS team is proud to support The Pandemic Consortium with our longstanding expertise and knowledge in epidemic and pandemic risk.
Dr. Gunther Kraut, Global Head of Epidemic Risk Solutions, Munich Re
“Expanding the reach and distribution of this expertise through the Syndicate’s consortium partners will help businesses better plan and prepare for future risks – while at the same time enabling a sustainable approach to managing aggregate capacity for this challenging risk,” said Dr. Gunther Kraut.
Munich Re also framed the solution as relevant beyond the private sector. The reinsurer cited a G20 panel on financing pandemic preparedness, which encouraged broader use of business interruption insurance to stabilize economies and reduce fiscal pressure on governments during future outbreaks.
