The Phoenix Mills Ltd, a leading Indian company, has become the first insured in the country to be covered against business interruption losses due to pandemic or epidemic outbreaks. The policy, which includes loss of revenue and additional expenses, is based on parametric triggers and empowers the company’s various business verticals to maintain operational continuity and financial stability in the face of any unforeseen global health crises. The company’s experience during the last pandemic, which led to zero revenue and substantial fixed costs, prompted them to seek innovative insurance solutions.
Gallagher, a leading risk management and insurance broking firm, structured and placed a tailored risk solution for the Indian market, bridging global reinsurance capacity with local insurance needs. The policy is reinsured by Munich Re’s Epidemic Risk Solutions team, which provides swift and transparent payouts based on predefined triggers. New India Assurance, the country’s largest non-life insurer, has officially issued the first Pandemic Insurance policy for Phoenix Mills Ltd under a Non-Damage Business Interruption (NDBI) package program.
The policy marks a new chapter in innovative risk management for India and provides the company with the assurance that it is better equipped and more resilient to face future pandemic-related disruptions. The ceremonial handover of the policy was attended by a distinguished senior delegation from Munich Re, New India Assurance, Gallagher Insurance Brokers, and Phoenix Mills Ltd, underscoring the strategic significance and collaborative spirit driving this groundbreaking initiative.
The introduction of this policy is a significant step towards addressing the insurance protection gap for epidemic-related risks in India. It is designed to provide swift financial protection when outbreaks disrupt business operations, allowing businesses to recover faster from catastrophic communicable disease outbreaks. The policy combines the power of parametric with innovation to provide a pioneering solution for pandemic risk management in India.