LIMRA, Reinsurance Group of America (RGA), the Society of Actuaries (SOA) Research Institute, and TAI have collaborated on an ongoing effort to analyze the impact of COVID-19 on the
individual life insurance industry’s mortality experience and share the emerging results with the insurance industry and the public. The Individual Life COVID-19 Project Work Group (Work
Group) was formed as a collaboration of LIMRA, RGA, the SOA Research Institute, and TAI to design, implement, and create the study and to produce and distribute a variety of analyses.
This report is the fifth public release from this collaboration and contains the results of the study of excess mortality for individual life insurance to include the second quarter of 2021.
Data from 31 companies representing approximately 72% of the industry face amount in force have been included in the analysis in this report. A total of 3.0 million death claims from
individual life policies from 2015 through June 30, 2021 make up the basis of the analysis.
Highlights for the 2nd Quarter
- The second quarter of 2021 showed a significant realignment of the actual to expected relative mortality ratios, across many different cuts of the data.
- It is worth noting that the third quarter 2021 results will likely not be as favorable due to the impact of the COVID-19 Delta variant whose impact first started in July 2021 and peaked
around mid- September
- All age groups improved in the second quarter compared to the first quarter of 2021, but the improvement was more dramatic in the older ages. While the three age groups shown under
age 65 were still significantly over the trend established by 2015-2019, the age 65-84 group was within the 95% confidence bands and the age 85+ group was significantly better than the
2015-2019 trend (p < 0.05).
- Whereas the pandemic experience so far had showed substantial variations across different regions, this appears to have moderated during the 2nd quarter of 2022.
Author(s): Individual Life COVID-19 Project Work Group, SOA
Publication Date: May 2022, accessed 21 May 2022
Publication Site: LIMRA