The proposals include solutions for the reopening of businesses against the threat of further waves of COVID-19, building greater resilience across global supply chains as well as the digital economy, and preparation and protection for the next systemic catastrophic event.
"The purpose of insurance is to help businesses and communities manage the risks they face, enable them to recover quickly from disasters by paying claims, and provide the security that allows them to innovate, develop and drive economic growth. COVID-19 has demonstrated that there is much more we can do to support our customers by providing protection for the changing risks they face," said Bruce Carnegie-Brown, Lloyd's Chairman.
"Some of these risks are of a scale that require partnership with governments globally and this report identifies ways in which the insurance industry could work with governments to share risk and create a braver, more resilient world."
Among the solutions developed (set out in further detail here) after consultation with global stakeholders, industry and Airmic members, are three open source frameworks:
ReStart - a potential non-damage business interruption solution (loss of revenue without a physical damage trigger)~ for future waves of COVID-19 being developed by the Lloyd's market, specifically focuses on supporting SMEs.
Recover Re - a proposed 'after the event' insurance product framework, that could provide immediate relief and cover for non-damage business interruption over the long-term, including the current COVID-19 pandemic.
Black Swan Re - a reinsurance framework for government and industry partnership that could better protect customers from the devastating and long-term impacts of systemic catastrophic events - from another pandemic, or global supply chain disruption, to the interruption of critical infrastructure or utilities.
Airmic has welcomed the proposals, saying they address the very acute and immediate challenges businesses are facing from the global pandemic, while also considering the medium and long-term insurance challenges that the pandemic has exposed.
"We are very much at the beginning of the crisis, and businesses need practical support and insurance solutions for potential future waves and unexpected consequences of this virus and Lloyd's has shown leadership in proposing practical solutions," Airmic said.
"We welcome the fact that the report also looks beyond the pandemic and addresses the need to find a framework for coping with the devastating and long-term impacts of systemic catastrophic events.
"The proposed solutions are the product of broad thinking and extensive consultation with Lloyd's customers, including those represented by Airmic, the insurance market and government. This collaboration is welcomed as it is vital during such a far-reaching crisis. Only by working together will we emerge from the pandemic stronger, and Airmic is looking forward to working with Lloyd's in turning this into a reality."