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Human pandemic:
Additional insight


Uncovering the impact of future infectious disease outbreaks

Pandemics can be unpredictable and the consequences and changes to daily life that follow an outbreak can be long-lasting. For many, the travel restrictions, social distancing, widespread testing, and underlying sense of fear have been ingrained in our collective memory, with some changes – like remote working – now integrated into our daily lives.

Countries in the Asia Pacific region with recent experience of infectious disease outbreak from SARS (2002-2004) had a much more effective COVID-19 response. To the West, some of their measures seemed draconian, including isolating whole towns and implementing long quarantine periods and daily testing. Some of the region’s habits were changed permanently due to SARS, including the general acceptance of mask-wearing in public areas.

As infectious diseases continue to evolve, it is crucial we understand how future outbreaks may unfold and reshape our world.

A man-made problem

While most viruses are naturally occurring, human intervention is making the emergence of man-made or man-assisted disease transmission a growing possibility. One of the most concerning outcomes is the proximity of people to high concentrations of animals and human migration into unknown habitats. Even in some of the most hygienic farming environments, there is still the possibility of zoonotic transmission (the transfer to humans of an animal-borne disease) for which there is little or no adequate treatment or vaccine.

In response to this threat, extensive research is being carried out into these diseases. While laboratory environments, particularly those dealing with environmental hazards, are extremely secure, a worst-case scenario would be the escape of a bioengineered version of disease that is super-resistant to medical intervention.


Climate change

Climate change is emerging as a significant driver of future pandemics. As global temperatures rise, previous dormant microbes trapped in melting glaciers and permafrost are being released. These ancient pathogens, which humans have not encountered for millennia, pose a new threat due to the lack of immunity in modern populations. An anthrax outbreak in 2016 caused by thawing permafrost in Siberia killed 2,649 reindeer and infected 36 people, including a 12-year boy who tragically died[24]

More concerningly, climate change has also enabled many heat-sensitive microbes to adapt to higher temperatures, increasing their ability to survive within the human body. While much of the ocean’s microbial life remains unexplored, the possibility of these microbes entering human populations should not be dismissed. That said, the most likely source of future pandemics will be from microbes that can infect terrestrial mammals and then jump to humans – a scenario the world is more familiar with and can better prepare for.

[24] https://www.science.org/content/article/permafrost-can-imprison-dangerous-microbes-centuries-will-arctic-thaw-release-them#:~:text=A%20more%20alarming%20pathogen%20may%20have%20already%20emerged%20naturally%20from


Systems under strain

Pandemics place immense pressures on global health systems. Countries with under-resourced healthcare systems will likely experience higher mortality rates and longer economic disruptions, as their systems struggle to cope with the surges in patient numbers, ventilator shortages, and limited access to essential care. We saw this disparity unfold during COVID-19, where ‘vaccine inequality’ left less than 1% of low- and middle-income country populations vaccinated.[25]

However not all diseases are likely to cause a pandemic, and not all pandemics will necessarily cause economic and social shutdown. The rigidity of lockdown measures has been directly in proportion to the ability of nations’ healthcare systems to avoid being overwhelmed. The Access to Healthcare Index of the INFORM risk index determines how capable each country’s provision is, based on the availability of healthcare workers, the overall immunity to measles through vaccination, spend per capita on healthcare and maternal mortality rate. The Index has shown significant changes in healthcare quality in the past two decades, which is likely to impact resilience to an infectious disease outbreak in the future. COVID-19 also acted as a catalyst for healthcare reform, driving rapid adoption of digital health solutions such as telemedicine[26], accelerated vaccine development, and the adoption of better disease surveillance and early warning systems.

[25] https://www.who.int/news/item/22-07-2021-vaccine-inequity-undermining-global-economic-recovery#:~:text=New%20Global%20Dashboard%20on%20COVID-19%20Vaccine%20Equity%20finds%20low-income%20countries[2] https://www.npr.org/2023/01/21/1150605295/three-years-on-how-covid-19-has-changed-health-care#:~:text=Michel%20Martin%20talks%20with%20Advocate%20Health%20CEO%20Eugene%20A.%20Woods

[26] https://www.npr.org/2023/01/21/1150605295/three-years-on-how-covid-19-has-changed-health-care#:~:text=Michel%20Martin%20talks%20with%20Advocate%20Health%20CEO%20Eugene%20A.%20Woods

Glossary

Terms
Description 
Virulence
The severity of a disease in a single person. The higher the virulence, the more likely it is to be fatal.
TransmissibilityThe ability of a disease to transfer from one person to the next. The Omicron variant of COVID-19 was much more transmissible than the Delta variant as it spread more easily among people. It was fortunately also less virulent.
ZoonoticA disease that can spread between humans and animals.
Case fatality ratio (CFR)
The number of people diagnosed with a disease who subsequently die of the illness. A measure of severity of the disease.
HaemorrhagicA disease that causes excessive bleeding.
Containment
Strategies that aim to minimise the risk of spread from infected to non-infected individuals. These include contact tracing, testing and quarantines.
MitigationStrategies that aim to slow the disease and limit the impact to healthcare. These include policy decisions around mask wearing, social distancing, and “lockdown”, or enhanced personal and workplace hygiene.

Explore the impact of infectious disease outbreak

The scenario narrative

Understand how these events could take place.

The economic impact

How vulnerable could the global economy be to a deadly infectious disease outbreak?

The role of insurance

How can insurance help build resilience in the face of future pandemics?

Disclaimer

This report has been produced by Lloyd's Futureset and Cambridge Centre for Risk Studies for general information purposes only. 

While care has been taken in gathering the data and preparing the report Lloyd's and Cambridge Centre for Risk Studies do not, severally or jointly, make any representations or warranties on behalf of themselves or others as to its accuracy or completeness and expressly exclude to the maximum extent permitted by law all those that might otherwise be implied.

Lloyd's and Cambridge Centre for Risk Studies accept no responsibility or liability for any loss or damage of any nature occasioned to any person as a result of acting or refraining from acting as a result of, or in reliance on, any statement, fact, figure or expression of opinion or belief contained in this report. This report does not constitute advice of any kind.

Note that this report does not seek to replace or inform any of the mandatory scenarios which Lloyd’s publishes to support the Realistic Disaster Scenario exercises managing agents are required to undertake in respect of the syndicates managed by them.