During the first nine months of 2021, the global life insurance industry was hit with Wuhan coronavirus (Covid-19) claims totaling $5.5 billion, compared to $3.5 billion for the entirety of 2020.
The figures were even worse in the United States, however. According to Dutch insurer Aegon, which conducts two-thirds of its business in the United States, claims during the third quarter of 2021 were $111 million, up from $31 million a year earlier. This represents a more than 258 percent increase.
Numerous other insurance carriers, including MetLife and Prudential Financial, are reporting similar increases. Many of them say they were forced to burn through far more cash than planned, cutting into the capital they set aside to ensure solvency.
South Africa’s Old Mutual, for instance, used up more of its plandemic provisions to pay claims. Reinsurer Munich Re also had to raise its 2021 estimate of Covid-19 life and health claims from 400 million euros to 600 million euros. (Related: Another insurance company, OneAmerica, reported a 40 percent increase in death claims after the vaccines were introduced.)
“The long-term nature of life insurance products – often lasting 20 years or more – means premiums are not yet capturing the risk that deaths or long-term illness from COVID-19 will likely remain higher than previously estimated,” reported Yahoo Finance.
“Competition in the industry is also keeping a lid on premiums.”