In order to meet the growing concerns and risk, Marsh partnered with Munich Re and Metabiota to create PathogenRX, an integrated pandemic risk quantification and insurance solution.

PathogenRX: Insuring your business for outbreaks, epidemics, and pandemics

PathogenRX provides indemnity protection that can compensate an insured in the event of a demonstrable loss, and can be tailored to provide coverage for specific expenses, geographies, types of disease, or portions of a calendar year.

The COVID-19 pandemic has demonstrated the potential devastating effect of infectious disease events on businesses and the economy. COVID-19, Zika, Ebola, MERS, SARS, and other recent viral outbreaks, epidemics, and pandemics have had widespread and profound effects on businesses across several industries, including hospitality, health care, real estate, travel, manufacturing, retail, and food and beverage. These events can be deadly and disruptive to businesses and their people, supply chains, and operations.

PathogenRX, developed by Marsh and Munich Re, is an insurance solution designed specifically for pandemic risk. The customizable policy provides financial protection against the fallout from an outbreak, epidemic, or pandemic, and is based on defined coverage triggers that allow for increased confidence in recovery of losses if the triggering event takes place.

Costly risk, limited options

Outbreaks, epidemics, and pandemics are not like other risks. They may occur over several months or even longer, are often not confined to a specific region, and can be unpredictable. And unlike most other perils, they can scale and grow over time.

They can also be costly:

  • The COVID-19 pandemic contributed to unprecedented financial market volatility, record levels of unemployment, and pervasive worries about a potential global recession. The International Monetary Fund estimates that in 2020, GDP fell 3.3% globally and 3.5% in the US.
  • The 2014-15 West African Ebola epidemic cost the economies of Guinea, Liberia, and Sierra Leone an estimated $2.8 billion, according to the World Bank.
  • The 2015-16 Zika outbreak cost Latin American and Caribbean economies as much as $18 billion, according to the United Nations Development Programme.

Yet companies have historically had few options for protecting against outbreaks, epidemics, and pandemics. Unlike natural catastrophes, these public health threats typically do not result in immediately identifiable physical damage, and calculating related losses can be difficult.

PathogenRX offers an innovative insurance solution for risks stemming from outbreaks, epidemics, and pandemics. Underwritten by Munich Re, PathogenRX enables companies to mitigate risk and enhance balance sheet protection in the event of an outbreak, epidemic, or pandemic.

Robust, customizable coverage

A public health outbreak can lead to loss of gross profits, loss of revenue, and extra expense. PathogenRX can provide coverage for such losses incurred as a result of an infectious disease event in a designated geographical coverage area. Coverage is typically based on three straightforward triggers:

  1. The World Health Organization (WHO) issues a Disease Outbreak Notice (DON) during the policy period.
  2. The WHO issues a Public Health Emergency of International Concern for the disease specified in the DON. 
  3. A civil authority orders restrictions — including sheltering-in-place or partial or full cessation of business — for the area covered by the policy or a respective cluster of the insured’s property.

All three triggers must be satisfied for the policy to respond.

Coverage under PathogenRX is provided on an occurrence basis; while the DON must be issued during the policy period, insured losses are typically covered if they take place within a year of the policy period’s end.

Innovative solution, extensive expertise

Multiyear options for PathogenRX can provide long-term price and capacity certainty. That can help companies protect themselves from future outbreaks, epidemics, and pandemics.

In addition to coverage under the policy, as a PathogenRX policyholder you will have access to a team of Marsh specialists who will work closely with you to understand your specific coverage needs. We will collaborate with specialists from Munich Re’s epidemic risk solutions unit to structure the most suitable PathogenRX program for you. And in the case of a covered event, our experienced and dedicated claims specialists will be available to guide you through the claims process.