Regulator mulls pandemic risk pool

The IRDAI is considering the formation of an Indian pandemic risk pool with contributions from local and foreign insurers and reinsurers, according to Mr Suresh Mathur, executive director at the regulatory agency.

A pandemic pool is being considered because international reinsurers do not provide pandemic cover, reported The Times of India.

The regulator formed a working group last year to explore the feasibility of establishing the pool. This was supposed to focus on risk to business continuity, reduction of stress on individuals and the issue of migrant labourers.

“The product initially will cater to the micro and small to medium enterprises. We want a product where salary protection would be covered up to three months or an actual lockdown period, whichever is less,” said Mr Mathur. In the second phase, it could provide health insurance, and the third phase would include life insurance cover. During these later phases, the amount of salaries protected could be increased.

Source: Asia Insurance Review