Phoenix Mills Ltd. has become the first business in India to buy pandemic insurance using parametric triggers, according to a joint announcement by New India Assurance, Gallagher, and Munich Re on October 16.
The policy provides Phoenix Mills with cover against Non-Damage Business Interruption (NDBI) losses arising from pandemic or epidemic outbreaks, covering loss of revenue and additional expenses across its portfolio of malls, hotels, and office properties throughout India.
Issued by New India Assurance under its NDBI programme, the policy was structured and placed by Gallagher, which acted as both insurance and reinsurance broker. It is reinsured by Munich Re’s Epidemic Risk Solutions team, which develops pandemic risk models and parametric payout structures.
Kailash Gupta, Group Chief Financial Officer of Phoenix Mills, said the last pandemic had materially affected the company’s operations, as retail outlets were closed for five to eight months, resulting in zero revenue and substantial fixed costs.
“It was an extremely challenging period, marked by uncertainty and disruption. This new insurance solution provides us with the assurance that we are now better equipped and more resilient to face such events in the future,” Gupta said.
Ajay Sadana, Head of Origination for Asia at Munich Re’s Epidemic Risk Solutions, said the product represents an important step toward redefining how insurers approach systemic exposures.
“Pandemic risk is, by nature, systemic, unfolding across geographies and sectors in real time. Making it insurable is not just a technical feat, but a redefinition of what insurance can hold,” Sadana said.
He added that such exposures cannot remain solely on insurers’ balance sheets, stressing the need for a broader financial architecture that turns risk into investable instruments. “By engaging capital markets, we distribute risk more widely and build a stronger, more resilient ecosystem,” he said.
The ceremonial handover took place at the Jio World Convention Centre in Mumbai, attended by senior delegates from Munich Re, New India Assurance, Gallagher Insurance Brokers, and Phoenix Mills.
“Structuring this pioneering pandemic cover reflects our commitment to redefining risk protection in India,” said Puneet Gehani, Chief Broking Officer, Gallagher Insurance Brokers Pvt Ltd. “In moments of crisis, clients deserve more than coverage; they deserve clarity, speed, and certainty. This solution delivers all three,” he concluded.
Parametric insurance solutions are rapidly expanding across Asia-Pacific, with India itself exploring a nationwide natural catastrophe scheme for faster disaster payouts.
Insurers across the region are also increasingly leveraging advanced technologies like AI, satellite imagery, and IoT to expand parametric insurance beyond natural catastrophes, developing tailored products for industries including tourism, events, travel, pandemics, and cyber.
