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.
Carannante, M.; D’Amato, V.; Fersini, Paola; Forte, Salvatore; Melisi,. (2022). Disruption of Life Insurance Profitability in the Aftermath of the COVID-19 Pandemic. RISKS, (ISSN: 2227-9091), 10:2, 1-16. Doi: 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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