Welcome to our latest life science newsletter covering topical insurance and risk management issues impacting the pharmaceutical industry.
Our main feature looks at the growing trend of medical marijuana. In recent years, a number of countries around the globe have passed laws that allow the use of marijuana for medical purposes.
As our attention turns to the New Year, what are the likely challenges that life science companies need to consider and plan for? As ever, it is impossible to predict but perhaps there are three areas that should be considered:
We have seen in 2018 that some exposures have moved up the risk agenda for life science companies. Cyber risks, in particular, have become a very real concern and for some companies have had a direct impact in 2018. Geo-political uncertainty has also increased, particularly between the increasingly protectionist Trump administration in the US and China. This is making the commercial trading environment in these regions less certain. Keeping a close watch for emerging risks will be a key priority.
For companies operating in the European Union, concerns regarding supply chain integrity have grown considerably and the uncertainty about post-Brexit boarder arrangements have forced many companies to stockpile in anticipation of possible disruption. Companies may need to adapt quickly to changing circumstances.
The insurance market has been highly competitive for many years. However, now, at least in some sectors, this is changing. Greater underwriting discipline is being imposed and surplus capacity is being redeployed, particularly in areas where competition or losses have resulted in unprofitable portfolios. If the market changes then a flexible approach to how insurance is used to efficiently mitigate potential financial volatility may be necessary.
In this edition we also cover:
- Regulations and legislations impacting the life science industry
- Mergers and acquisitions in the sector
- An update on the latest clinical research
As an insurance specialist and risk adviser to life science companies we hope this periodic JLT newsletter will help you keep informed about some of these developments, in the industry and in the insurance market.
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For more information, please contact ClientFirst@jltcanada.com.