Marsh & Citi Develop Risk Structure To Boost COVAX Vaccine Delivery

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Insurance broker Marsh collaborated with World Bank Citi to create an innovative risk mitigation framework designed to help the Vaccine Alliance (Gavi) pre-purchase vaccines in bulk with greater confidence and facilitate rapid distribution. and fair around the world.

Developed on behalf of Gavi, the risk mitigation framework will cover the risk associated with many governments self-financing their COVID-19 vaccine purchases through the COVAX facility.

The structure offers protection against the risk of non-payment in 21 countries in Africa, the Americas, Asia and continental Europe. However, 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 AXA XL, Chubb, Liberty Specialty Markets, Sovereign Risk Insurance, Swiss Re Corporate Solutions and Tokio Marine HCC.

Stephen Kay, Political Risk Leader, Marsh, commented: “Striving for greater global equity in vaccines by increasing immunization rates around the world will not only help countries recover from the impact of pandemic, but could also reduce the risk of new variants arising from levels of community transmission. This innovative structure will accelerate this process by enabling Gavi to purchase and distribute vaccines faster and with greater financial confidence. “

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Assietou Diouf, Managing Director of Finance and Operations at Gavi, said: “An 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. “

Jay Collins, Vice President, Banking, Capital Markets and Advisory at Citi, and Senior Banker for the Citi team who act as Gavi’s financial and risk advisor, added, “We are proud to have worked with Gavi, Marsh and the world leader in commercial insurance to design and implement this risk mitigation strategy for the COVAX facility. The structure allows COVAX to accelerate other vaccine purchasing agreements for the world.

“This public-private partnership is another example of the innovative measures taken by the COVAX Facility to accomplish its mission. “

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