Life insurers adapt pandemic risk models after claims jump

Rooters London ^ | 1-13-22 | Carolyn Cohn and Noor Zainab Hussain

[ptsal]

A coronavirus pandemic which lasts five years, another pandemic in a decade, and ever more transmissible variants are among the scenarios life insurers are predicting after COVID-19 claims jumped more than expected in 2021.

The global life insurance industry was hit with reported claims due to COVID-19 of $5.5 billion in the first nine months of 2021 versus $3.5 billion for the whole of 2020, according to insurance broker Howden in a report on Jan 4, while the industry had expected lower payouts due to the rollout of vaccines.

"We definitely paid out more than I had anticipated at the beginning of last year," said Hannover Re (HNRGn.DE) board member Klaus Miller.

[ptsal]

The bean counters, modelers, and actuaries are focusing on their bottom lines. Negative profits are not good for the salary bonus plan. /s. Archived version:::https://archive.is/BZG6s

[ptsal]

The long-term nature of life insurance products – often lasting 20 years or more – means premiums are not yet capturing the risk that deaths or long-term illness from COVID-19 will likely remain higher than previously estimated. Competition in the industry is also keeping a lid on premiums.

Actuaries say rising claims will be eating into the capital which insurers set aside to ensure solvency.

In the initial “shock” period of the pandemic in 2020, the insured U.S. population suffered 12% more deaths than average, according to research from life insurance trade association LIMRA shared with Reuters.

[Alberta's Child]

The bigger story here is that the biggest jump in life insurance claims was seen in GROUP insurance plans, not individual policies. That’s an important distinction because group plans are typically carried by employers and professional organizations, which means almost all the insurers are working-age people.

This is not likely to be a phenomenon caused by COVID, but something tied to motor vehicle crashes, drug abuse, crime, and perhaps even COVID “vaccine” side effects.

[ex91B10]

Next up: they will start claiming Covid is “an act of nature”.

[Sooth2222]

This is not likely to be a phenomenon caused by COVID, but something tied to motor vehicle crashes, drug abuse, crime, and perhaps even COVID “vaccine” side effects.

If I were in the fortunate position of drawing a paycheck to stay at home and not required to actually produce any work, I'd be working on some of the hundreds of projects that I haven't had time for over the last few decades.

Many others, it looks like, may fill their free time with activities that are not in their best personal interests.

The S&P 500 has almost doubled since the pandemic lows, so even if life insurance claims are much higher, their investment portfolios are much higher, too. They should be okay.

If they aren't, they need to fire their accountants and actuaries, not ask taxpayers for bailouts.

[ptsal]

Good to see you are up and mobile (keyboard mobile).

Yep, the insurers will be invoking the “Fauci Clause” and the “Bat Breeding” subparagraph. /s

[Flick Lives]

...claims due to COVID-19 of $5.5 billion in the first nine months of 2021 versus $3.5 billion for the whole of 2020, according to insurance broker Howden in a report on Jan 4, while the industry had expected lower payouts due to the rollout of vaccines.

—

The “vaccines” are not real vaccines, thus the problem.

[Bogey78O]

Higher payouts mean they bet folks would live far longer than they did, usually.

So I’m guessing these were in younger people than in 2020.

[mewzilla]

Not MVAs, not during the lockdowns.

But suicides, ODs, undiagnosed or underlying health conditions that went untreated, suicides, homicides...all those during the lockdowns.

MVAs and suicides, ODs, even more homicides, more deaths due to healthcare delays, and the vaxxes since the lockdowns were lifted.

Also, and this is really interesting, hundreds of thousands of lives might have been saved during the lockdowns, inadvertently, because patients weren’t there to be killed by medical mistakes.

I daresay Big Med is making up for that now.

[Alberta's Child]

No offense, but your post makes me wonder if you even know some of the most basic facts about insurance.

1. If you are being paid to sit home and not do any work, it’s not likely that you’d be covered by a group insurance plan.

2. The nature of the insurance business dictates that it must be heavily invested in assets that maintain a very stable value and produce a reliable income stream. So the portfolios of these companies are comprised mainly of bonds, not stocks. See how the bond market has performed over the last two decades and then get back to us about how well these investments have done.

And maybe I missed something because I didn’t read the whole article … but are these insurance companies actually asking for a bailout?

[9YearLurker]

“Perhaps even”?!?

[bray]

Ivermectin would have cured it two years ago.

[ridesthemiles]

Note to actuaries:

The FEDERAL government is LYING to you about the virus AND the vaccines.

[Alberta's Child]

Yes. The spike in life insurance claims began before the “vaccines” were even available to most younger people, so there are clearly some causes of death here that don’t involve those jabs.

[9YearLurker]

We know the CDC-enforced hospital protocols have been killing people, but the big spike came in 3Q21 for the employer-group policies, which is right in line with the jabs. The big jumps are in heart attacks, strokes, etc., for people in age groups where those were relatively rare until 3Q21.