ARTICLE · 28 FEBRUARY 2006

Avian flu – Is the Market Ready?

Barlow Lyde & Gilbert LLP

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One of the biggest concerns currently on the catastrophe radar screen is the potential for avian flu to mutate into a form which can spread amongst humans. The World Health Organisation has cautioned that even if avian flu does not turn out to be as virulent as some predict, 7.4 million people could die worldwide. Economic damage could easily run into hundreds of billions of dollars as business grinds to a halt. Insurers could be exposed to a sizeable hit – providers of life and health insurance

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Yvonne Jefferies

Leigh Williams

Originally published in The Insurance Law Quarterly: Winter 2005

One of the biggest concerns currently on the catastrophe radar screen is the potential for avian flu to mutate into a form which can spread amongst humans. The World Health Organisation has cautioned that even if avian flu does not turn out to be as virulent as some predict, 7.4 million people could die worldwide. Economic damage could easily run into hundreds of billions of dollars as business grinds to a halt. Insurers could be exposed to a sizeable hit – providers of life and health insurance, business interruption cover, livestock cover, contingency cover, travel cover and reinsurers of those lines may all be significantly affected.

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