According to a recent report from Hartford Financial Services Group, COVID-19 might have caused an increase in U.S. life claims – $2 billion. Hartford alone has already incurred around $38 million in outbreak-related group benefits claims. Hartford stated that group benefit losses “relate mostly to group life claims.”
Hartford Claims Amount
Ryan Krueger, a securities analyst with Keefe, Bruyette & Woods, has pointed out that, for Hartford, all by itself, $38 million in claims amounts to just 2.8% of quarterly premiums. “Assuming 80% of the claims are group life, this would add roughly 5 points to the group life loss ratio,” Krueger says. This loss has raised eyebrows on how an increase in U.S. life claims has been affected by COVID-19.
Increase In U.S. Life Insurance claims
On average, 2.8 million people die in the U.S. from all causes per year. Reinsurance Group of America executives have released estimates suggesting that people with life insurance in the U.S. increased by more than 18% over the normal level for a year. Also, the company believes the rate of increase is at levels of a 200-year event pandemic. Another analyst from Aite Group suggests that COVID-19 in April alone could have caused $4.8 billion to $7.2 billion in U.S. life insurance claims. In April alone, government figures suggest that the all-cause death rate might have increased by more than 10%.
Talk To Your Agent
With numbers still being figured out, the impact of COVID-19 is still unknown. Experts estimate current deaths attributed to COVID-19 at around 142,601, with a total number of 3,834,208 cases. With no set date for when we might have a cure, it is important to talk to your agent about potential plans that might be able to cover blows.
Life Insurance Questions?
We hope this information on the increase of insurance claims is helpful. If you are experiencing symptoms of coronavirus such as fever, cough shortness of breath, or any other symptom defined by the CDC consult with your doctor.
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