GLOBAL HEALTH RISK FRAMEWORK

Pandemic Financing

____________

WORKSHOP SUMMARY

Gillian J. Buckley and Rachel E. Pittluck, Rapporteurs

Board on Global Health

Institute of Medicine

THE NATIONAL ACADEMIES PRESS

Washington, DC

www.nap.edu

THE NATIONAL ACADEMIES PRESS    500 Fifth Street, NW    Washington, DC 20001

This activity was supported by Grant No. 10002589 from The Bill & Melinda Gates Foundation, Grant No. 10002593 from the Ford Foundation, Grant No. 10002605 from the Gordon and Betty Moore Foundation, Grant No. 10002606 from Mr. Ming Wai Lau, a grant from the Paul G. Allen Family Foundation, Grant No. 10002603 from The Rockefeller Foundation, Contract No. 10002604 with the U.S. Agency for International Development, and Grant No. 10002596 from the Wellcome Trust. Any opinions, findings, conclusions, or recommendations expressed in this publication do not necessarily reflect the views of any organization or agency that provided support for the project.

International Standard Book Number-13: 978-0-309-38109-3
International Standard Book Number-10: 0-309-38109-6
Digital Object Identifier: 10.17226/21855

Additional copies of this report are available for sale from the National Academies Press, 500 Fifth Street, NW, Keck 360, Washington, DC 20001; (800) 624-6242 or (202) 334-3313; http://www.nap.edu.

Copyright 2016 by the National Academy of Sciences. All rights reserved.

Printed in the United States of America

Suggested citation: National Academies of Sciences, Engineering, and Medicine. 2016. Global health risk framework: Pandemic financing: Workshop summary. Washington, DC: The National Academies Press. doi: 10.17226/21855.

The National Academy of Sciences was established in 1863 by an Act of Congress, signed by President Lincoln, as a private, nongovernmental institution to advise the nation on issues related to science and technology. Members are elected by their peers for outstanding contributions to research. Dr. Ralph J. Cicerone is president.

The National Academy of Engineering was established in 1964 under the charter of the National Academy of Sciences to bring the practices of engineering to advising the nation. Members are elected by their peers for extraordinary contributions to engineering. Dr. C. D. Mote, Jr., is president.

The National Academy of Medicine (formerly the Institute of Medicine) was established in 1970 under the charter of the National Academy of Sciences to advise the nation on medical and health issues. Members are elected by their peers for distinguished contributions to medicine and health. Dr. Victor J. Dzau is president.

The three Academies work together as the National Academies of Sciences, Engineering, and Medicine to provide independent, objective analysis and advice to the nation and conduct other activities to solve complex problems and inform public policy decisions. The Academies also encourage education and research, recognize outstanding contributions to knowledge, and increase public understanding in matters of science, engineering, and medicine.

Learn more about the National Academies of Sciences, Engineering, and Medicine at www.national-academies.org.

This page intentionally left blank.

PLANNING COMMITTEE ON GLOBAL HEALTH RISK
FRAMEWORK: A WORKSHOP ON PANDEMIC FINANCING¹

PRASHANT YADAV (Chair), Senior Research Fellow and Vice President of the Health Care Research Initiative, William Davidson Institute, University of Michigan

ELIZABETH EMANUEL, CCRIF SPC (formerly Caribbean Catastrophe Risk Insurance Facility)

GABRIELLE FITZGERALD, former Director, Ebola Program, Paul G. Allen Family Foundation

OLGA JONAS, Economic Adviser, The World Bank Group

NACHIKET MOR, Chairman of the Board, CARE India; Board member, Reserve Bank of India and CRISIL

FRANCES REID, Chief Investment Officer, CDC Group plc

PETER SANDS, former Group Chief Executive Officer, Standard Chartered PLC; Senior Fellow, Mossavar-Rahmani Center for Business and Government, John F. Kennedy School of Government, Harvard University

IOM Staff

GILLIAN J. BUCKLEY, Senior Program Officer

RACHEL E. PITTLUCK, Research Associate

DAVID T. GARRISON, Senior Program Assistant

FAYE HILLMAN, Financial Officer

PATRICK W. KELLEY, Director, Board on Global Health

__________________

¹The National Academies of Sciences, Engineering, and Medicine’s planning committees are solely responsible for organizing the workshop, identifying topics, and choosing speakers. The responsibility for the published workshop summary rests with the workshop rapporteurs and the institution.

This page intentionally left blank.

Reviewers

This workshop summary has been reviewed in draft form by individuals chosen for their diverse perspectives and technical expertise. The purpose of this independent review is to provide candid and critical comments that will assist the institution in making its published workshop summary as sound as possible and to ensure that the workshop summary meets institutional standards for objectivity, evidence, and responsiveness to the study charge. The review comments and draft manuscript remain confidential to protect the integrity of the process. We wish to thank the following individuals for their review of this workshop summary:

Although the reviewers listed above have provided many constructive comments and suggestions, they did not see the final draft of the workshop summary before its release. The review of this workshop summary was overseen by Martin J. Sepulveda, IBM Corporation. He was responsible for making certain that an independent examination of this workshop summary was carried out in accordance with institutional procedures and that all review comments were carefully considered. Responsibility for the final content of this workshop summary rests entirely with the rapporteurs and the institution.

This page intentionally left blank.

Acknowledgments

The planning committee and project staff wish to acknowledge the many people who contributed to this report. We extend our sincere gratitude to the panelists and moderators who shared their valuable time and expertise to make the workshop a success. These individuals are listed in the workshop agenda in Appendix B. We are grateful also to the participants who attended the workshop, in person and via the live webcast, and further enriched the discussion.

In developing the agenda, project staff benefited from the knowledge of many people. These include Isaac Anthony, Tamar Manuelyan Atinc, Bruce Aylward, Bhargav Dasgupta, Sarah Dunn, Sarah England, Augustin Flory, Francis Ghesquiere, Fatima Kassam, Mehreen Khalid, Anja Langenbucher, Michael Roth, Frantz Sawyer, Panos Varangis, Anne Marie Worning, and Geng Xiao, as well as the panelists and moderators listed on the agenda. The staff and planning committee learned a great deal from Pamela Cox, who generously shared her experience both on the phone and in person, and we thank her for the time and effort she gave to the event. A number of others provided valuable recommendations and introductions: Irene Agyepong, Cyril Allen, Damon Bristow, Julie Dana, Peter D’Souza, Tim Evans, Neil Ferguson, David Ferreira, Julio Frenk, Ekhosuehi Iyahen, Mohga Kamal-Yanni, Seth Kroop, Patrick Lukulay, Gugu Mahlangu, Denise McElhinney, Judit Rius Sanjuan, Daniel Ryan, Carmen Villar, Yan Wang, Wendy Woods, Winnie Yip, and Thomas Zeltner.

Many staff of the National Academies of Sciences, Engineering, and Medicine supported this activity from the early stages of the Global Health Risk Framework initiative to the pandemic financing workshop itself to

the publication of this summary report. In particular, we wish to acknowledge the efforts of Marton Cavani, Chelsea Frakes, Greta Gorman, Faye Hillman, Sarah Kelley, Fariha Mahmud, Patsy Powell, Moises Ramirez, Bettina Ritter, Mario Velasquez, and Jesse Willis.

Finally, the planning committee and staff would like to thank the sponsors of the Global Health Risk Framework initiative for generously funding this activity: The Bill & Melinda Gates Foundation, the Ford Foundation, the Gordon and Betty Moore Foundation, Mr. Ming Wai Lau, the Paul G. Allen Family Foundation, The Rockefeller Foundation, the U.S. Agency for International Development, and the Wellcome Trust.

Contents

Acronyms and Abbreviations

1 Introduction

2 International Cooperative Action on Pandemics

3 Pandemic Emergency Funds¹

4 Adapting Insurance Products for Pandemic Risk

5 Innovative Financing Mechanisms for Preparedness and Response

6 Identifying Triggers and Modeling Risk

7 Financing Challenges In-Country

8 Donor Considerations and Crowding-In

9 The Role of the Private Sector

10 Incentives and Preparedness

__________________

¹The title of this chapter has been updated since the initial release of this report.

Appendixes

A References

B Workshop Agenda

C Participant Biographies

Acronyms and Abbreviations