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

Maria Carannante, Valeria D’Amato, Paola Fersini, Salvatore Forte and Giuseppe Melisi
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Maria Carannante: Department of Pharmacy, University of Salerno, Via Giovanni Paolo II, 132, 84084 Fisciano, Italy
Valeria D’Amato: Department of Pharmacy, University of Salerno, Via Giovanni Paolo II, 132, 84084 Fisciano, Italy
Paola Fersini: Department of Business and Management, Luiss Guido Carli, Viale Romania, 32, 00197 Rome, Italy
Salvatore Forte: Faculty of Law, Giustino Fortunato University, Via Raffaele Delcogliano, 82100 Benevento, Italy
Giuseppe Melisi: Department of Law, Economics, Management and Quantitative Methods, University of Sannio, Piazza Guerrazzi, 82100 Benevento, Italy

Risks, 2022, vol. 10, issue 2, 1-16

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.

Keywords: SCR; profitability; annuity; mortality projections (search for similar items in EconPapers)
JEL-codes: C G0 G1 G2 G3 K2 M2 M4 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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