Study Findings from Central University of Finance and Economics Advance Knowledge in COVID-19 (The Negative Impact of COVID-19 on Life Insurers): Coronavirus – COVID-19

2021 OCT 07 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx COVID-19 Daily -- Investigators discuss new findings in coronavirus. According to news reporting originating from Beijing, People’s Republic of China, by NewsRx correspondents, research stated, “Understanding COVID-19 induced mortality risk is significant for life insurers to better analyze their financial sustainability after the outbreak of COVID-19.”

The news correspondents obtained a quote from the research from Central University of Finance and Economics: “To capture the mortality effect caused by COVID-19 among all ages, this study proposes a temporary adverse mortality jump model to describe the dynamics of mortality in a post-COVID-19 pandemic world based on the weekly death numbers from 2015 to 2021 in the United States. As a comparative study, the Lee-Carter model is used as the base case to represent the dynamics of mortality without COVID-19. Then we compare the force of mortality, the survival probability and the liability of a life insurer by considering COVID-19 and those without COVID-19. We show that a life insurer’s financial sustainability will deteriorate because of the higher mortality rates than expected in the wake of COVID-19.”

According to the news reporters, the research concluded: “Our results remain unchanged when we also consider the effect of interest rate risk by adopting the Vasicek and CIR models.”

For more information on this research see: The Negative Impact of COVID-19 on Life Insurers. Frontiers in Public Health, 2021,9. (Frontiers in Public Health - http://journal.frontiersin.org/journal/public-health). The publisher for Frontiers in Public Health is Frontiers Media S.A.

A free version of this journal article is available at https://doi.org/10.3389/fpubh.2021.756977.

Our news editors report that more information may be obtained by contacting Xun Zhang, China Institute for Actuarial Science, School of Insurance, Central University of Finance and Economics, Beijing, People’s Republic of China. Additional authors for this research include Pu Liao, Xiaohua Chen.

(Our reports deliver fact-based news of research and discoveries from around the world.)