Pharmaceutical company AstraZeneca has unveiled a five-year business resilience insurance policy within its captive and reinsurance framework, focusing on a connected risk solution.
According to the firm, the policy, supported by three of the world’s largest reinsurers, offers cover against supply chain disruption, reputational damage and product withdrawal.
Initially, the connected risk policy provides risk financing against a range of major events, with minimal exclusions, but it is anticipated that as the exposures become better understood, there will be a major industry shift to innovative risk transfer structures of this type.
In the announcement via the Russell Working Group of risk managers, Kevin Steed, head of group insurance at AstraZeneca, says: “Our risk landscape is constantly evolving, and we need to adapt and move on.
“Sharing the learning and experiences should help all of us in our roles and position corporate insurance as a headliner for innovation.”
David Broughton, chair of the Russell Working Group and head of insurable risk at Centrica, explains: “We need to move away from peril-based traditional insurance products to considering risk from an outcome-based perspective.”
Suki Basi, managing director of Russell, said: “The insurance market has been perceived as resistant to change, but here is an example of market leaders displaying true innovation.
“One of the biggest wins of this connected risk policy is that it responds to outcomes, so it is a major step in the right direction.”
