Life insurance profitability depends on reliable mortality risk projections and pricing. While the COVID-19 pandemic has caused disruptions around the world, this is a temporary mortality shock likely to dissipate. In this paper, we investigate the long-run impact of COVID-19 on life insurance profitability. Due to the long-run dynamics of the mortality characterised by a decreasing effect of the COVID-19 mortality acceleration, we suggest proactive mortality risk management by implementing prompt premium adjustments, in order to increase the resilience of the business.
Disruption of Life Insurance Profitability in the Aftermath of the COVID-19 Pandemic / Carannante, M.; D’Amato, V.; Fersini, Paola; Forte, Salvatore; Melisi,. - In: RISKS. - ISSN 2227-9091. - 10:2(2022), pp. 1-16. [10.3390/risks10020040]
Disruption of Life Insurance Profitability in the Aftermath of the COVID-19 Pandemic
Fersini, P.;Forte, S.;
2022
Abstract
Life insurance profitability depends on reliable mortality risk projections and pricing. While the COVID-19 pandemic has caused disruptions around the world, this is a temporary mortality shock likely to dissipate. In this paper, we investigate the long-run impact of COVID-19 on life insurance profitability. Due to the long-run dynamics of the mortality characterised by a decreasing effect of the COVID-19 mortality acceleration, we suggest proactive mortality risk management by implementing prompt premium adjustments, in order to increase the resilience of the business.
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