Insurers feel the COVID-19 pandemic comes with too many uncertainties to offer cover.
Life insurance policy sales have been spiking since the start of the COVID-19 pandemic, but the availability of this coverage may not continue as it has been.
Insurers have been faced with a sudden and dramatic amount of unknown coverage data.
Life insurance policy sales are based on the answers to several questions and the use of actuarial tables to determine each applicant’s rates. However, with the addition of the coronavirus pandemic, the factors influencing what an applicant’s rates should be have become unknown. This is not a place of confidence for insurers.
“Now because of this black swan event, there are no actuarial tables for this,” said Jenny Life co-founder, Chirag Pancholi as quoted in a Forbes report.
Attempting to calculate accurate factors regarding mortality risk from COVID-19 requires data that simply is not yet available. Currently, total case numbers are quite likely to be under-reported. The reason is that individuals with mild cases often do not seek medical care. Moreover, due to test shortages, many countries are testing only individuals with more severe symptoms, skewing the data because mild cases are not being recorded…Read more>>