Insurance industry initiative, led by Aon, offers supply chain protection for COVID-19 vaccine shipments
Aon has introduced a new solution, through broad insurance industry collaboration, to provide supply chain protection for global COVID-19 vaccine shipments.
It provides transparent cargo insurance coverage for COVID-19 vaccines by combining sensor data and analytics. Loss payments are triggered for doses that fall outside of the agreed-upon temperature range while being transported or stored.
Real-time reporting of any temperature deviation helps with mitigation of losses, enabling more effective risk management and claims support.
The solution is available to qualified parties in the vaccine supply chain including pharmaceutical firms, government bodies, transportation and logistics companies, distributors, health systems, pharmacy chains and inoculation centres.
“Aon has been working on client solutions utilising sensor technology in the supply chain for several years,” said Lee Meyrick, CEO, Global Marine, Commercial Risk Solutions at Aon. “Recognising the concerns faced with the global distribution of COVID-19 vaccines, we explored the development of a new solution to provide financial protection to the companies involved in the distribution process.
“Working with leaders in the industry, we were quickly able to build out a group of like-minded insurers that are willing to underwrite the risks using verifiable and effective sensor technologies.”
The collaboration involves insurtech firm Parsyl, which will serve as the dedicated data platform for the solution on behalf of the insurers, and specialist underwriter Ascot Group acting as the lead underwriter, binding insurers Chubb European Group SE and AIG, with reinsurance support from Munich Re.
Other insurers include AEGIS London, Antares Managing Agency Ltd (a QIC Global company), AXA XL, AXIS Insurance, Beazley, Fidelis, MS Amlin and Talbot.
While Aon will not mandate the use of specific Internet of Things (IoT) platforms or sensor devices, insureds will have the option to access those services and products on a complimentary basis during 2021.
ChronosCloud, Intel, Mastercard and Sensitech, a part of Carrier Global Corporation, have agreed to donate access to certain platforms, blockchain technology or devices as part of the risk management solution.
“ChronosCloud is proud to collaborate with Aon in the fight against COVID-19. Our cloud-based platform connects all partners of the supply chain with real-time Internet of Things sensors for active condition monitoring,” said John Hoyt, managing director of ChronosCloud. “ChronosCloud actively responds to any temperature fluctuations, so shippers can ensure continuous quality. This powerful platform plays an important role as a part of Aon’s vaccine delivery initiative.”
Aon will donate 100 percent of all revenues from the initiative in 2021 to a charity dedicated to eradicating the global human and economic toll of the pandemic.