Munich Re has entered into a long-term cooperation agreement with Metabiota, a company that has pioneered the use of real-time data collection and comprehensive risk analytics for epidemics.

The issue of epidemics has always been present in life insurance, but epidemic risks are mostly excluded in property-casualty insurance products. Now, based on the data and analytics provided by Metabiota, Munich Re aims to develop models and insurance solutions in property-casualty insurance designed to mitigate the economic losses caused by epidemics. The solutions will support the recovery of national economies and businesses, enabling individuals to return to normal life.

“Epidemics are not one-off events, but demonstrate distinct patterns similar to natural catastrophes. And just as natural catastrophes can be insured despite the diversity and uniqueness of the events, epidemics are no exception,” said Nathan Wolfe, founder and CEO of Metabiota. “We are capturing unique data on infectious diseases supporting the development of financial mechanisms to limit the economic impact of epidemics.”

Tobias Farny, Chief Executive Asia-Pacific for Greater China, Korea and Southeast Asia at Munich Re: “When it comes to finding solutions, it all starts with data analytics that help us better understand the direct and indirect costs of infectious diseases for various industries. We are working with Metabiota to capture these insights and improve our understanding and quantification of epidemic risk. Eventually, we will be in a position to model the potential financial impact an epidemic may have on a region and its economy and offer the right insurance solutions.”

Munich Re has already made use of Metabiota’s data and real-time monitoring capabilities to structure innovative solutions to transfer epidemic risk to investors in a private placement and has also worked with Metabiota on data analysis for a cover for the infectious disease MERS in Korea.