July 11, 2020

Volume X, Number 193

July 10, 2020

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July 09, 2020

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The International Underwriting Association backs proposals for “Pandemic Re"

The International Underwriting Association (“IUA“) announced earlier this week that it is supporting calls to devise a government supported insurance solution for future pandemic events, known as “Pandemic Re”.

Pandemic Re was first launched as a steering group in April following criticism regarding how the insurance sector has responded to claims arising from the Coronavirus crisis. A project committee has now formed with six working groups. More than 50 industry representatives have been appointed to the Pandemic Re working groups, including MP Amber Rudd who will lead the legal, regulatory and government affairs working group. Lloyd’s of London has also agreed to provide resources to two of the working groups.

Stephen Caitlin, chair of the Pandemic Re steering group explained that “The insurance industry needs to be on the front foot in the current situation, paying claims quicklywe need to find an inustry solution for future pandemics and this group has many years of combined industry experience.”

IUA stated that it has been following discussions regarding different possible approaches to providing cover for future losses from pandemic risks. On Monday, IUA chief executive Dave Matcham said “I am pleased that Pandemic Re has been able to gain support for its work… [m]any IUA members are represented in the working groups that are being formed to examine different aspects of the issue.” Mr Matcham also confirmed that IUA will provide any additional support needed and that it is committed to finding effective recovery solutions.

Pandemic Re is working with UK state-backed terrorism mutual, “Pool Re”. Pool Re was set up in 1993 in the wake of the Provisional IRA’s bombing campaign in the 1990s which led to insurers withdrawing cover for terrorism-related damage. Pool Re will provide structural recommendations to Pandemic Re.

A separate reinsurance initiative named “Recover Re” is also being considered by Lloyd’s which would offer after the event cover for pandemic related business recovery.

© Copyright 2020 Squire Patton Boggs (US) LLPNational Law Review, Volume X, Number 157

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About this Author

Garon Anthony Litigation Attorney Squire Patton Boggs Birmingham, UK
Partner

Garon is a partner in the Litigation Practice Group. He advises clients across the full range of commercial dispute issues, including cyber liability/data breach, professional negligence, banking, pensions and insurance.

Garon regularly acts for clients who are subject to investigations or disciplinary proceedings by national and international regulators, including most recently the Financial Conduct Authority, the Financial Reporting Council and the Dubai Financial Services Authority.

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Sarah Neill Associate   Birmingham Commercial Litigation
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Sarah Neill qualified into the Commercial Litigation team in September 2019 after completing her training contract with the firm. During her time in the team, Sarah has assisted on a wide variety of disputes, including breach of warranty, product liability, debt recovery and breach of contract. Sarah acts for a diverse client base, from individuals to PLCs.

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