COVID-19 Deaths to Spark High Insurance Claims Globally

The COVID-19 will test the liquidity and solvency of insurance companies across the world as the COVID-19 pandemic leads to more deaths. High Life Insurance claims to stare life insurance companies on the face.

Prior to COVID-19, 3 influenza pandemics in the 20th century which are worth knowing are the infamous 1918 Spanish Flu, 1957 Hong Kong Flu and the 1968 Asian Flu.

A Moderate Pandemic Scenario (MPS) estimates that some $7.8 billion individual Life gross claims are possible however a Severe Pandemic Scenario (SPS) may raise such claims to about $94 billion.  The question as to whether COVID-19 claims will be paid by insurers is answered by Santosh Agarwal. According to him

“If the deceased person had a life insurance policy, then the nominee or the beneficiary nominee must know that the death caused by health-related issues are generally covered under a life insurance policy including term insurance,” Santosh Agarwal, Chief Business Officer, Life Insurance, Policybazaar.com – economictimes.indiatimes.com

READ: Coronavirus, the game-changer in family life and child care

The big question is would the life insurance industry be capable of paying life insurance claims?

Recently Moody revealed that people with health insurance policies in Wuhan would keep insurance claims manageable. However, this cannot be said for the US, UK, and Italy where the impact of the virus has reached great breaking proportions with no end in sight soon.

The unprecedented death tolls and hospitalization of tens of thousands will empty the coffers of many insurance companies when the pandemic is over.

READ: Insurance and You: What is Life Insurance Policy?

Life insurance policyholders and third-party individuals insured who have lost their lives will have insurance claims filed by their families.

The economic meltdown caused by the COVID-19 will make the demands for insurance claims more aggressive, requiring such firms to Fastrack claims processing and payment.

Health centers in the middle of the fight against the disease will have to keep accurate information on the men and women who have fallen due to the virus.

Failure to keep proper records can spark several lawsuits from both ends, this insurance claimants and insurance firms signed at protecting their stakes.

Prior to these claims, insurance companies must begin to make realistic projections of the likely cost of such claims now.

This would provide them ample time to plan and strategize for the floods of claims to be made.

Life insurance companies must get ready for the most challenging times ahead as families of persons who fell under the COVID-19 file for claims in the future.

Source: NewsGhana24