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Payouts of US life insurers can make $7.2 billion

A worldwide COVID-19 coronavirus pandemic may last for several years, as stated in the report of the Center for Research and Policy on Infectious Diseases at the University of Minnesota. As a result, US life insurers may face claims for $7.2 billion if mortality from coronavirus increases, Bloomberg informs.
Payouts of US life insurers can make $7.2 billion

According to experts, the pandemic will last until about two-thirds of the world's population suffer through the virus and acquire immunity to it. As noted in the report, COVID-19 is quite difficult to control, as in some people it is asymptomatic, but virus carriers can infect others.

Life insurance companies are in stable condition, so they can cope with payments even with high mortality risk group. It includes people of 56-74 years of age. The total amount of payments may exceed $4 billion.

“There is no doubt that companies are prepared for a negative scenario,” said Samantha Chow, an analyst with Aite Group LLC. - Covid-19 mortality in the US as of Wednesday has risen to almost 60 thousand people, more than double the rate achieved two weeks earlier.”

Metlife Inc., one of the largest life insurance companies in the United States increased its equity and even bought back its bonds in the market for $1 billion.

“The biggest problem could be payment delays. Considerable funds are spent on treating the infected, and people will need quick reimbursements, as many have lost their jobs,” said the analyst.

Experts believe that despite the measures taken by various countries infection control, coronavirus will continue to spread in waves, which may occur even after 2022.

Source: https://www.bloomberg.com/news/articles/2020-04-30/virus-death-surge-may-mean-7-2-billion-in-life-insurance-claims

Photos are from open sources.

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