Aon and Munich Re have partnered on a pandemic reinsurance solution for Indonesia and the Philippines that will deliver “robust protection” for insurers.

The offering aims to help organisations address non-damage business interruption losses arising from pandemics – a risk often excluded from property and casualty policies, except in areas such as medical and travel insurance.

The broker and reinsurer say the partnership enables Aon to access dedicated pandemic capacity for clients’ hospitality industry risks, with Munich Re providing reinsurance capital, pricing and wordings.

The solution combines indemnity-based coverage with parametric triggers, which is intended to provide greater clarity and confidence around coverage response while supporting a more efficient approach to risk transfer.

Aon CEO of Asia reinsurance solutions Soeren Soltysiak said: “The Covid-19 pandemic highlighted the protection gap for this peril, particularly for non-damage business interruption losses.

“It also reinforced the need for new solutions that help organisations build greater financial resilience and confidence ahead of potential future outbreaks.”

Munich Re Asia CEO Hitesh Kotak said: “Pandemic risk remains one of the most significant protection gaps facing economies across Asia.

“This solution provides organisations in Indonesia and the Philippines with greater access to protection against pandemic-related disruption and supports their ability to recover and grow following future public health events.”