The main takeaways in the note include the following:
- Supervisors can play an important role in helping to ensure that a balance of policyholder protection and market development considerations are built into the design and implementation of future multi-stakeholder insurance-based programs to address pandemic risk.
- The role of supervisors will vary according to their respective mandate; supervisors with a financial inclusion or market development mandate may take a different approach to purely prudential and conduct authorities.
- There will be no "one size fits all" approach to addressing pandemic risk protection gaps, and any approach will be shaped by the environment in the given jurisdiction.
- A key role for supervisors includes providing technical and other advice to government on prudential risks associated with any insurance-based programs developed to address pandemic risk and the regulatory framework under which such a program could operate.
- Taking on board lessons learnt from several high-profile cases relating to policy wording for BI coverage, supervisors can play an essential consumer protection role as future coverage for pandemic risk is developed.
- There may be scope to consider supervisory initiatives aimed at building prevention measures into pandemic risk coverage to enhance resilience against future pandemics.
- In readiness for future pandemics, supervisors could play an influential role in fostering certain conditions for local markets to enable multi-stakeholder initiatives aimed at expanding coverage for pandemic risk.
- Concepts presented in this note, in the context of pandemic risk, could also be applicable to initiatives aimed at bridging protection gaps for potentially systemic risks, such as wide-scale cyber disruption or catastrophic climate-related events.