LLOYD’S PROPOSES GOVERNMENT-BACKED ‘BLACK-SWAN’ SCHEME

In a report published today, Lloyd’s has proposed a government-backed facility to cover future catastrophic black-swan events, such as a cyber event or solar storm. Black-Swan Re would provide reinsurance for commercial non-damage business interruption cover for black swan events through industry pooled capital, backed by a government guarantee. Lloyd’s also proposed ReStart Re, a non-damage business interruption solution to protect against further waves of Covid-19 using Lloyd’s capacity without government support. Recover Re, an ‘after the event’ insurance product framework would provide immediate relief and cover for non-damage business interruption, including the current Covid-19 pandemic. The proposals were developed in conjunction with Lloyd’s UK and global advisory groups.