Possibility of bird flu pandemic plan for the unthinkable now

A bird flu pandemic causing an unprecedented number of deaths is increasingly being regarded as a possibility by leading experts in the health and business sectors, especially after witnessing the alarming situation in Turkey.

Although some European countries and North America are not known to have been hit by avian flu, the fatal virus strain H5N1 had never been seen in any of the developed countries, until the end of last year.

The virus was confined predominantly to the South East Asian countries like Cambodia, China, Indonesia, Thailand and Vietnam. However this year has so far seen parts of Europe reporting possible outbreaks. According to the latest World Health Organisation (WHO) reports, there have so far been 20 people affected in Turkey by the deadly version of bird flu.

The message being conveyed is loud and clear no country is immune to the virus and it is imperative that the global community as a whole wakes up to this threat with real seriousness.

The shipping industry, an integral part of the global economy, also needs to be cautious of its potential role in spreading the virus as the ships can carry migratory birds which perch on deck. An infected bird can put both cargo and crew at risk. Quarantining of the ships can have disastrous consequences on trade.

In the last quarter of the year 2005, Reuters reported two cases of ships being detained at ports in Greece and Malta because of dead birds found on board.

Fortunately, no infections were found among the crew and tests came back negative.

Epidemic diseases with the potential of affecting humans, can have devastating economic consequences. According to an Asian Development Bank report, the financial loss suffered by China, Hong Kong and Singapore, three of the most severely affected countries from Sars in 2002, was more than $37 billion.

The threat of a flu pandemic and the associated economic and social costs are very real, according to a report by Aon, the world's second largest insurance broker. The 'pandemic survey' compiled by the company's Marine Global Practice Group found that more than 80 per cent of companies questioned viewed a possible influenza pandemic as a threat to their business, yet fewer than 60 per cent have put measures in place to protect themselves against such a risk.

Middle Eastern countries like Saudi Arabia, Oman and UAE have got a good amount of investment tied up in poultry industry. It is however observed that many of the poultry farms in the region are still not comprehensively insured for mortality or death caused due to diseases; they prefer to go for the minimum insurance required by their bankers, that covers loss or damage due to fire and allied perils.

Amongst the standard insurance policies being sold in the region, there is little insurance protection for loss of business income resulting from a pandemic.

The current focus on bird flu brings opportunities for the insurance industry in taking over some of the risks which the business community is exposed to.

It may be an idea for all types of businesses which could be affected by a possible pandemic to revisit their insurance policies and seek adequate protection.

- The writer is Deputy General Manager with Al Rajhi Company For Cooperative Insurance, Riyadh. The views expressed are his own and not necessarily subscribed to by his employers.