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In a pioneering step for India’s insurance landscape, The Phoenix Mills Ltd. has become the country’s first corporate to secure coverage against pandemic-induced business interruption losses using parametric triggers. The policy, issued by New India Assurance and reinsured by Munich Re, is designed to protect Phoenix Mills’ nationwide portfolio of malls, hotels, and office assets from future epidemic-related disruptions.
The coverage includes loss of revenue and additional expenses arising from epidemic events, enabling Phoenix Mills to maintain operational continuity and financial resilience. “We experienced the impact of the last pandemic firsthand—our retail outlets remained closed for 5 to 8 months, leading to zero revenue and substantial fixed costs. 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,” said Mr. Kailash B Gupta, Group CFO, The Phoenix Mills Ltd.
The policy was structured by Gallagher Insurance Brokers, which acted as both insurance and reinsurance broker. Gallagher bridged global reinsurance capacity with local insurance needs, delivering a tailored Non-Damage Business Interruption (NDBI) solution for the Indian market. “In moments of crisis, clients deserve more than coverage—they deserve clarity, speed, and certainty. This solution delivers all three,” said Mr. Puneet Gehani, Chief Broking Officer, Gallagher India.
Phoenix Mills’ treasury team played a key role in shaping the policy. “Poonam and I conducted an in-depth review of the various aspects of the policy and articulated the nuances of our business to Gallagher’s experts. This collaborative exchange was pivotal,” said Mr. Prashant Khandelwal, Head – Banking & Treasury, Phoenix Mills Ltd.
The policy is reinsured by Munich Re’s Epidemic Risk Solutions (ERS) team, which specializes in parametric solutions for communicable disease outbreaks. “This product combines the power of parametric with innovation to provide swift financial protection when outbreaks disrupt business operations,” said Ms. Surbhi Goel, CEO, Munich Re India.
Mr. Ajay Sadana, Head of Origination for Asia, Munich Re ERS, added, “Making pandemic risk insurable is not just a technical feat—it’s a redefinition of what insurance can hold. By engaging capital markets, we distribute risk more widely and build a stronger, more resilient ecosystem.”
New India Assurance, India’s largest non-life insurer, officially issued the policy under its NDBI package program. “For over 106 years, we’ve introduced innovative products to meet emerging risks. This milestone reinforces our commitment to safeguarding businesses and society,” said Ms. Girija Subramanian, CMD, New India Assurance.
The ceremonial handover took place at the Jio World Convention Centre, attended by senior leaders from Phoenix Mills, Gallagher, Munich Re, and New India Assurance, including representatives from India, Singapore, and Munich. The event marked a strategic leap in India’s preparedness for future health crises—and a new chapter in corporate risk management.
