Insurance and Pension Fund

Operations

Life insurers shift to pre-pandemic Norms

Published on Friday, September 3, 2021

Presented by
Name: Tahmid Jahin
ID: 1912286630
Course: FIN433
Section: 07
 Key Takeaway
 The aftermath of the Pandemic was life-insurance sellers putting waiting periods to
comprehend long-term affects of covid-19 on health.

 Generally life insurance requires the benefits to be paid to the beneficiary upon the policy
holder’s death

 Life Insurance insurers assessed a higher probability of resulting in payment to the policy
holders factoring in the long-term covid health consequences

 Premiums were at a standstill during covid, only insurers postponed providing covers
 Implications
 In order to decrease the rate of Adverse Selection problem, the insurers put a halt on offering cover at the early stage of the
pandemic.

 However as wide vaccination rolled out resulting in a reduction of hospitalization and death rates, the life insurance
industry is going back to pre-pandemic times

 Insurers are willing to sell to more customers, now as a result of underlying health consequences

 Because sources confirmed people with underlying health issues are willing to pay 5 times more than the standard premium
rates.

 Therefore, the premium rates for health insurance will spike up in near future
Thank You!