Last year, insurance firms and industry experts observed a high increase in mortality claims, as would be predicted due to the COVID-19 pandemic. Many of these claims were filed for fatalities that were not caused by COVID-19, which were exceptionally high in 2021. It might be because many Americans could not obtain necessary health treatment during the 2020 lockdowns and their aftermath.
According to the reports, insurance claims for COVID-19 fatalities increased 18.7 percent during the epidemic, as expected. However, there was a 19% rise in claims for non-COVID fatalities, which was both unexpected and startling. According to a study, incurred claim numbers were roughly 40% higher than the pre-pandemic baseline.
According to a Wall Street Journal poll, insurance firms report more non-COVID-19 death claims than pre-pandemic baselines. According to the publication, the poll results match what numerous life insurance firms informed industry analysts and investors during earnings calls. Hartford Financial Services Group Inc., Primerica Inc. and Reinsurance Group of America Inc. all reported higher policyholder death rates.
Moreover, the corporations blamed the extra deaths on delays in medical care caused by 2020 coronavirus lockdowns, as well as people’s constant dread of seeking medical treatment. “The losses we’re experiencing continue to be elevated beyond 2019 levels, people believe, attributable at least in part to the pandemic,” Globe Life CFO Frank Svoboda allegedly told investors in February.
CEO Christopher Swift stated that his firm “had greater levels of non-COVID excess mortality during the quarter” the leading causes of mortality were heart disease, stroke and cancer. OneAmerica Financial Partners, another group life insurance vendor, reported a 140 percent rise in claims for working-age individuals over their pre-pandemic baseline.