Innovating Beyond Traditional Insurance
We encourage clients and potential clients to engage with us to explore how such innovative insurance solutions can be tailored to their specific needs.
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At JPIC, we are excited to spotlight a groundbreaking innovation in the insurance industry. This development, led by Kevin Steed of AstraZeneca with support from The Russell Group, represents a significant leap forward in risk financing.
AstraZeneca has successfully insured its top three risks with substantial deductibles through a reinsurance structure of the Company’s captive, but with a revolutionary twist: the coverage is based on outcomes rather than traditional perils-based triggers. This innovation transcends conventional insurance, enabling the Company to address the consequences of supply chain disruptions, reputational damage, and product withdrawals—regardless of the cause.
This concept, which moves insurance beyond old-style peril-based coverage, offers a much more valuable, high-level solution for interconnected risks that could be impacted by a combination of factors. Neil Timberlake, JPIC Director has been an instrumental part of the working group for this innovative idea since its inception, dating back to his time at ColumbiaThreadneedle when he collaborated with The Russell Group to formulate the ideas for more innovative thinking in insurance. The final product was negotiated by AstraZeneca without direct broker involvement. It is the first step in a move away from the conventional, siloed approach to insurance which clients tell JPIC and Russell Group, stifles their ability to insure the real risks faced by businesses globally.
This pioneering approach highlights the potential for businesses to manage complex risks more effectively. We encourage clients and potential clients to engage with us to explore how such innovative insurance solutions can be tailored to their specific needs. Kevin Steed, Russell Group and the various members of the working group involved in this initiative, deserve great credit for their perseverance in opening up the potential in the reinsurance market and recognising the value of collaborative innovation in pushing the boundaries of risk financing.
Author: Neil Timberlake, Director