“The life science policy we can offer is a great achievement for us,” said Kelly Ross-Howard (pictured above). “Many brokers have been sending submissions and it has been fantastic to review and provide policies that fit insureds’ needs.”
Stakeholders in the life sciences space say the sector is rapidly evolving. In response, insurance firms like Ross-Howard’s are developing specialised coverages.
She recently accepted an underwriting role at Melbourne-headquartered Keystone Underwriting. Ross-Howard has more than 25 years of industry experience in Australia and the UK, much of it developing coverages and responding to risk challenges in the life sciences area.
According to a Keystone news update “her able assistance” helped the firm secure its new life sciences binder. Insurance Business asked what this offering can cover?
“Keystone has a very strong Lloyd’s backed solution for clients that require public and products liability, medical malpractice, professional indemnity and clinical trials no fault compensation insurance,” said Ross-Howard. “We have started with public and products liability cover with an up to $20 million limit of indemnity for insureds requiring specific cover.”
She said the businesses that could use these coverages include cosmetic wholesalers and manufacturers, beauty care product manufacturers and nutraceutical (a food substance that helps to maintain health) powder manufacturers.
Information from brokers, said Ross-Howard, plays an important role helping her firm build a picture of the risks facing these businesses, particularly if they are startups. She said her firm’s underwriters, who specialize in this niche, can provide brokers with contractual reviews and a level of collaboration that will help deliver clients tailored solutions.
She said this life sciences insurance coverage stands out in the market for its adaptability.
“The combined policy offers the ability for sections of its coverage to dynamically adjust based on a company’s growth, research and development phases, or involvement in product trials,” said Ross-Howard. “This adaptability throughout a company’s lifecycle is a unique selling point, ensuring that coverage remains adequate.”
She said this also helps facilitate a smooth underwriting process.
Ross-Howard suggested that this flexibility is important for dealing with the challenges in the sector.
“Challenges relate to the evolving nature of biotechnology and pharmaceutical innovations,” she said. “This leads to increased risks and uncertainties for insurers.”
Ross-Howard said the rapid advancements in medical technologies and personalised medicine require insurers “to continually reassess and adapt their underwriting models.”
She also said the regulatory landscape is very complex.
“There is potential for high-profile product liability claims,” said Ross-Howard.
Other risk areas, she said, can involve technological advances.
“The sector’s rapid technological progress in areas such as gene editing and artificial intelligence in drug discovery is prompting insurers to develop specialised policies,” said Ross-Howard.
There are also bio-manufacturing and supply chain risks, she said.
“The shift to advanced bio-manufacturing processes necessitates insurance coverage for supply chain vulnerabilities, contamination events, and business interruptions,” said Ross-Howard.
However, there are also considerable opportunities in the sector.
“Life sciences insurance in Australia offers the prospect of covering advancing technologies such as gene therapy and feme health [feminine health], which require specialised coverage,” she said.
For example, said Ross-Howard, coverages for pharmaceutical companies developing treatments for hormonal imbalances, reproductive health issues, or menopause symptoms.
Also, medical device firms creating diagnostic tools and contraceptives, she said, and biotechnology companies researching technologies related to reproductive health or women’s cancers.
“The expansion of life science companies globally and the increasing emphasis on healthcare data security also create opportunities for Keystone to provide coverage for international exports and management of clinical trials within the sector,” she said.
She said Keystone already has insureds in “various stages of development”, including in clinical trials.
“Life sciences appeal to a wide range of sectors and customers, including pharmaceutical and biotechnology companies that leverage research for drug development,” she said.
There are also healthcare providers, said Ross-Howard, benefitting from advancements in medical technologies and diagnostics that can improve patient care.
“Academic institutions and government agencies also play a crucial role, utilising life sciences for research, education and public health initiatives,” she said.
Are you an insurance stakeholder in the life sciences? Please tell us about the challenges and opportunities you see below
