By Georgina Kenyon

Insurance companies are stepping up their marketing of damage-protection products to pharmaceutical and life science companies, some say in response to a June report by the US Food and Drug Administration laying out a collaborative strategy to more closely track the quality of goods globally.

In response to increasing regulatory activity, UK-based JLT Specialty, part of the Jardine Lloyd Thompson Group, has begun marketing such ‘nondamage’ products more aggressively this past summer—and they’re dropping their prices.

The price of the insurance depends on a variety of conditions—for instance, the size of the company seeking insurance, the limits bought and the triggers chosen. However, over the past year the cost of coverage has dropped more than threefold, from approximately 5% to 1.5% of the estimated coverage. For example, previously, $5 million could have covered a company worth $100 million, whereas now it costs $1.5 million to cover the same-sized company.

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