Life Insurers’ Impact From COVID-19 Could Be Minimal: Moody’s

The potential claims impact of increased death benefits from the COVID-19 pandemic on life insurers will be relatively small, Moody’s Investors Service reports.

Recent first-quarter earnings calls of U.S. life insurers show there remains significant uncertainty around the amount of difference there will be between insured mortality and general mortality, Moody’s said.

However, life insurers’ estimates are consistent with Moody’s view that death benefits paid out as a result of COVID-19 will be relatively small.

Companies mainly downplayed the impact of a longevity risk offset, which was consistent with Moody’s  analysis that the benefits of longevity risk offset would be generally small.

The following are comments that Moody’s compiled from life insurers’ first-quarter earnings calls.