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:10.3390/risks10020040

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

Maria Carannante^*
, Valeria D'Amato
, Paola Fersini
, Salvatore Forte
, Giuseppe Melisi

^*Corresponding author

University of Salerno
Libera Universita Internazionale degli Studi Sociali Guido Carli
Giustino Fortunato University

Research output: Contribution to journal › Article

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.

Original language	English
Pages (from-to)	N/A-N/A
Journal	Risks
Volume	10
Issue number	2
DOIs	https://doi.org/10.3390/risks10020040
Publication status	Published - 2022

All Science Journal Classification (ASJC) codes

Accounting
Economics, Econometrics and Finance (miscellaneous)
Strategy and Management

Keywords

SCR
profitability
annuity
mortality projections

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10.3390/risks10020040

Cite this

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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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AU - D'Amato, Valeria

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AU - Forte, Salvatore

AU - Melisi, Giuseppe

PY - 2022

Y1 - 2022

N2 - 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.

AB - 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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KW - profitability

KW - annuity

KW - mortality projections

KW - SCR

KW - profitability

KW - annuity

KW - mortality projections

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

Abstract

All Science Journal Classification (ASJC) codes

Keywords

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