Distributing vaccines to developing countries with weak supply chains presents multiple challenges, including maintaining low temperatures required to ensure efficacy. Limited availability of affordable insurance for health supply shipments to developing countries compounds this challenge, often resulting in over-ordering of supplies to account for losses and gaps in health systems when supplies are damaged.
Solution and Impact
DFC financing will enable Parsyl, Inc., a Denver-based insurtech company, to establish a new insurance provider—Syndicate 1796—to mitigate the risks of transporting health products including COVID-19 vaccines, therapeutics, equipment, and related supplies to countries around the world, including many lower-income countries where delivery is particularly challenging.
Syndicate 1796 anchors the Global Health Risk Facility at Lloyd’s, the world-class commercial and specialty insurance provider, and this new syndicate will provide affordable insurance policies for purchasers, suppliers, shippers, and others involved in transporting vaccines and other health products.
By helping mitigate transport and storage risks, this new insurance facility is expected to increase shipments of vaccines around the world, including many hard-to-reach, last-mile locations in developing countries.
The new facility will cover vaccines, diagnostics, therapeutics, personal protective equipment, machinery, and other products related to COVID-19 and any other infectious disease control and prevention. It will provide coverage for transit and storage of products, including theft, loss, or damage to eligible businesses including private manufacturers, ministries of health, public health agencies, purchasers, logistics companies, and others. The facility will also offer reinsurance to local market insurers.
The project advances DFC’s Global Health and Prosperity Initiative, which seeks to bolster health systems in the developing world.