Risks (Feb 2022)

Disruption of Life Insurance Profitability in the Aftermath of the COVID-19 Pandemic

  • Maria Carannante,
  • Valeria D’Amato,
  • Paola Fersini,
  • Salvatore Forte,
  • Giuseppe Melisi

DOI
https://doi.org/10.3390/risks10020040
Journal volume & issue
Vol. 10, no. 2
p. 40

Abstract

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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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