River Valley Insurance Agency Inc Blog
When there’s a wildfire, they tend to spread rapidly and they don’t differentiate between the things they destroy in their path. Once your house and possessions are consumed in a fire, it’s too late to consider getting fire insurance.
Much like a wildfire, infectious disease also spreads at an exponential rate. On March 21, 2014, there was a confirmation of an Ebola outbreak in Guinea. According to the World Health Organization, in April 2015, the money spent to control the disease led to a modest sum of $5 million. In July of the same year, the cost already reached $100 million. It ballooned to $1 billion in October. Ebola acts like a loan shark and serial killer. If there is no money to deal with the outbreak, a lot of people will suffer and die.
Brett Adamson was an Australian nurse who worked for the Médecins Sans Frontières (MSF). He summed up the medical aid workers' frustration in West Africa: the world’s slow response to current situations. Because of this, people like Brent can only assume to see the worse.
Controlling the emerging pandemic disease can be a significant financial investment but it can also provide an enormous return. 2014's Ebola crisis was marked by the failure of other people to contribute to the Ebola outbreak. Thus, the World Bank learned the hard way that finance should be in place now to fight the future emerging pandemics.
In January 2015, there was a World Economic Forum in Davos. Jim Yong Kim, the World Bank President who was also a physician, outlined a plan to create a global fund that will issue funds to provide money for essential pandemic fighting measures. A key element in this strategy is the involvement of the private sector. Capital markets may force NGOs and governments to become prepared for pandemics. RMS now has discussions with a network of NGOs with regard to issuing emerging pandemic funds for as preparation.
There is a considerable market potential for pandemic bonds. People need to invest a huge volume of responsible capital in these bonds. Companies who want to hedge pandemic risks should invest in them too.
With RMS’ LifeRisks models, the only stochastic excess mortality models, are also the only things that people can use in the 144A transaction. They are undertaking risk analysis for all excess mortality capital markets transactions since the swine flu pandemic in 2009.
At River Valley Insurance we take pride in making sure our clients are well protected at prices they can afford. To learn more about how we can help you, please contact our agency at (616) 301-9500 or Click Here to request a free quote.