Gallagher Partners with New India Assurance and Munich Re to Offer India’s First Pandemic Insurance
A new insurance solution aimed at mitigating pandemic-related financial losses for businesses has been launched through a collaboration between Gallagher Insurance Brokers, New India Assurance, and Munich Re.
The first-of-its-kind parametric pandemic insurance policy was issued to The Phoenix Mills Ltd, which operates malls, hotels, and offices across India. The policy covers business interruption losses, including revenue loss and additional expenses, triggered by epidemics or pandemics.
The COVID-19 pandemic highlighted vulnerabilities in business continuity, prompting Phoenix Mills to seek more robust coverage. Kailash B Gupta, of Phoenix Mills, said, “This new solution provides assurance that we are now better equipped and more resilient to face such events.”
The parametric model allows payouts based on predefined triggers, such as epidemic declarations, enabling faster recovery for affected businesses. Surbhi Goel, CEO of Munich Re India, emphasized that the product combines innovation and speed to strengthen pandemic preparedness.
New India Assurance, India’s largest non-life insurer, issued the policy as part of its non-damage business interruption package, marking a milestone in corporate risk management.
Separately, India is exploring parametric insurance for climate-related disasters, aiming for rapid payouts when weather thresholds like rainfall or wind speed are breached.