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Insurers, drugmakers sail into unknown with vaccine rollout


(Reuters) — Speedy global delivery of COVID-19 vaccines by air and sea in ultra-cold conditions will lead to a jump in cargo insurance rates and spur demand for new areas of coverage, leaving underwriters on high alert.
Pharmaceutical companies normally manage the risks of transporting their products through buying insurance or relying on an in-house insurer, a captive insurer.
But as Pfizer Inc. and other drugmakers start to roll out vaccines more broadly, existing company-wide annual cargo insurance programs are likely to be insufficient, industry sources say.
“Where manufacturers or logistics providers see gaps in their coverages, they may look to the insurance markets to plug those gaps,” said Charlie Netherton at broker Marsh. ....

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