Like everyone else, Peter Lacovara is coping with COVID-19, working at home to limit contagion to the coronavirus and stay healthy. He’s also plugging away trying to keep businesses healthy, as well. Executive SummaryThere have been no COVID-19 claims filed for coverage under a parametric insurance policy designed to provide business interruption insurance in the event of a pandemic. That’s because no company bought the policy developed by Marsh, Munich Re and Metabiota since the May 2018 launch. But demand is soaring for this type of coverage now. The prospect of tying the insurance to blockchain technology to create smart contracts that can pay out with limited human involvement would make it even more valuable, brokers say.
In his role as a senior vice president and leader of Marsh’s Alternative Risk practice, Lacovara has been fielding emails and phone calls from risk managers about PathogenRX, the broker’s innovative parametric insurance policy developed with Munich Re and technology firm Metabiota. The policy, designed to provide business interruption insurance in the event of a pandemic, is the only one of its kind.
The emails and phone calls to Lacovara do not involve claims, as not a single company bought the parametric insurance product following its launch in May 2018. Now, of course, every risk manager is hoping they can still buy it.