Life and disability insurance, as well as annuities, traditionally have been analyzed as products providing protection against random losses. This article proposed that these products can be viewed as derivative instruments created to address the uncertainties and inadequacies of an individual’s human capital, if human capital is viewed as a financial instrument. In short, life insurance (including disability insurance and annuities) is the business of human capital securitization.
Author(s): Krzysztof M. Ostaszewski, PhD, MAAA, FSA, CFA
The first quarter of 2020 all-cause individual life death counts were in the range of 93% to 99% for the first quarter in the previous five years, similar to the CDC’s estimated actual to expected all-cause deaths for the population.
The second quarter of 2020 all-cause individual life death counts were in the range of 110% to 113% for the second quarter in the previous five years. This was lower than the CDC’s second-quarter estimate of 118% to 123% for the population.
The average attained age at death of the individual life COVID claims is 0.6 years older than the average age of non-COVID claims. The U.S. population had a much larger difference of 3.0 years between the average attained age of COVID and non-COVID deaths.
Author(s): Individual Life COVID-19 Project Work Group