Chris Reynolds, Head of Life Pricing at SiriusPoint and a member of the Continuous Mortality Investigation (CMI) Committee, looks at the impact of the COVID-19 pandemic on term assurance experience in the UK.
Writing for the Institute and Faculty of Actuaries Blog, Chris provides further details on the Committee’s recent Working Paper 162 and considers the experience of policyholders with term assurances in 2020, including the initial impact of COVID-19.
According to Chris, the findings “suggest that COVID-19 had less impact on policyholders of term mortality assurances than it did on the general population, but there are some caveats to this comparison and the impact varies by gender.
“For accelerated critical illness we see that experience in 2020 is lighter than expected in all months… highly unlikely that this drop represents a genuine fall in experience. More likely is that it reflects a displacement of claims caused, for example, by disruption to routine medical and screening services.”
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