{"id":18435,"date":"2020-05-20T00:16:35","date_gmt":"2020-05-20T04:16:35","guid":{"rendered":"https:\/\/lifeinsurance-orleans.ca\/Life-Insurance-Blog\/coronavirus-claims-to-have-modest-impact-on-life-insurers-says-moodys\/"},"modified":"2020-05-20T00:16:35","modified_gmt":"2020-05-20T04:16:35","slug":"coronavirus-claims-to-have-modest-impact-on-life-insurers-says-moodys","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2020\/05\/20\/coronavirus-claims-to-have-modest-impact-on-life-insurers-says-moodys\/","title":{"rendered":"Coronavirus claims to have ‘modest’ impact on life insurers, says Moody’s"},"content":{"rendered":"
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Moody\u2019s estimates that the COVID-19 pandemic could cause death benefit claims to rise significantly for U.S. life insurers, but not enough to materially impact their capital reserves.<\/p>\n

In a new industry report, the ratings agency said that while it does not expect a widespread coronavirus infection rate with relatively high mortality for the insured population, such a scenario would result in significant growth of death benefit claims for U.S. life insurers, particularly those that carry a large amount of mortality risk.<\/p>\n

In its industry analysis, the agency assumed three infection scenarios: a low-end base case of 2% infection rate within the insured population, a high-end base case of 10%, and a stress scenario with a 40% infection rate. Across all infection-rate cases, it assumed a 1% fatality rate.<\/p>\n

Assuming the total number of deaths remain within the base-case range of estimates, the agency said the resulting rise in death benefits should lead to a marginal decline in capital of less than 5% for most of the direct writers it rates.<\/p>\n

Bur if the ultimate number of deaths tops its current base-case projections and comes closer to the tail scenario, the overall impact will be below 20%, with some insurers seeing significant capital reductions coupled with other extreme economic impacts.<\/p>\n

Life reinsurers would be most exposed to a pandemic, the agency added, noting that subsidiaries of larger entities could receive beneficial capital support from their parent companies.<\/p>\n

The ratings agency acknowledged that reported coronavirus-related fatality rates in the U.S. have exceeded 1%, but assumed that the confirmed COVID-19 cases underestimate the true number of total infections in the country. With increased testing, Moody\u2019s analysts said, infection rates should increase above its base-case range and fatality rates to fall well below 1%.<\/p>\n

Read the original article at https:\/\/www.lifehealthpro.ca\/rss\/ <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Moody\u2019s estimates that the COVID-19 pandemic could cause death benefit claims to rise significantly for U.S. life insurers, but not enough to materially impact their capital reserves. In a new industry report, the ratings...<\/p>\n","protected":false},"author":578,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/18435"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/578"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=18435"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/18435\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=18435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=18435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=18435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}