Marsh has partnered with banking giant Citi to develop a risk mitigation structure on behalf of the Gavi Vaccine Alliance to cover the risk associated with governments self-financing their COVID-19 vaccine purchases through the COVAX facility of the World Health Organization (WHO).
The structure will allow Gavi, a Geneva-based global public-private health partnership that co-leads COVAX with the WHO, to pre-purchase wholesale vaccines from manufacturers with greater confidence and facilitate faster distribution. and more equitable vaccines globally.
The structure provides coverage against the risk of non-payment in 21 countries in Africa, the Americas, Asia and Continental Europe. Under the terms of the policy, the identity of the countries covered and other aspects of the policy will not be disclosed.
The policy is underwritten by six leading insurers, namely AXA XL, Chubb, Liberty Specialty Markets, Sovereign Risk Insurance, Swiss Re Corporate Solutions and Tokio Marine HCC.
“Striving for greater global equity in vaccines by increasing vaccination rates around the world will not only help countries recover from the impact of the pandemic faster, but could also reduce the risk of new variants. resulting from high levels of community transmission, “said Stephen Kay, political risk manager. chef in Marsh. âThis innovative structure will accelerate this process by enabling Gavi to purchase and distribute vaccines faster and with greater financial confidence. “
Assietou Diouf, Managing Director of Finance and Operations at Gavi, added: âAn initiative like COVAX requires a risk mitigation structure commensurate with its scale, complexity and ambition. This new structure will further strengthen the foundation of COVAX, which is the best mechanism the world has to end the acute phase of the COVID-19 pandemic. “