Think Advisor – Page 7 – Actuarial News

Excerpt:

THINKADVISOR: What’s your take on President Biden’s proposal for fixing Social Security?
ALICIA MUNNELL: A step in the right direction. Good ideas but incomplete. There’s nothing wrong with it. It’s just not complete. He wants to have a few benefit enhancements and to increase taxes for people earning over $400,000. But I don’t think his numbers close the full 75-year Social Security [system] shortfall.

Author(s): Jane Wollman Rusoff

Publication Date: 19 March 2021

Publication Site: Think Advisor

First COVID-19 Wave Hit Preferred Insureds Hard: Work Group

March 15, 2021March 15, 2021 Mary Pat Campbell

Link: https://www.thinkadvisor.com/2021/03/12/first-covid-19-wave-hit-preferred-insureds-hard-work-group/

Excerpt:

The team found that deaths attributed to COVID-19 accounted for 5.1% of the individual life insurance death claims participating insurers received in the first half of 2020.
About 2% of all of claims for all causes were for people younger than 45. That was about the same percentage as in 2019.
About 1% of the COVID-19-related claims submitted in the first half of 2020 were for people under 45.
The overall increase in the odds of dying from any cause was highest for insureds in their 70s.

Author(s): Allison Bell

Publication Date: 12 March 2021

Publication Site: Think Advisor

Group Wants Life Underwriters to Post COVID-19 Standards

March 14, 2021March 14, 2021 Mary Pat Campbell

Link: https://www.thinkadvisor.com/2021/03/01/group-wants-life-underwriters-to-post-covid-19-standards/

Excerpt:

The Consumer Federation of America says life insurers should voluntarily disclose the changes they are making in life insurance underwriting procedures and standards as a result of the COVID-19 pandemic.
The Washington-based federation says life insurers ought to at least answer basic questions, such as whether they will require applicants to use COVID-19 vaccines, what kinds of tests and test results they’ll require and whether and how standards might vary by applicant age.

Author(s): Allison Bell

Publication Date: 1 March 2021

Publication Site: Think Advisor

Grim COVID-19 Scenario Could Cut Pension Liabilities

March 11, 2021March 11, 2021 Mary Pat Campbell

Link: https://www.thinkadvisor.com/2021/03/09/grim-covid-19-scenario-could-slash-pension-liabilities/

Excerpt:

The pandemic could also slash pension plan sponsors’ liabilities, by making ordinary health care an expensive luxury — and driving up the U.S. death rate for decades to come.
Analysts at Club Vita US LLC have presented those scenarios in a look at the possible effects of the COVID-19 pandemic on three types of U.S. pension plans: defined benefit plans sponsored by single employers; defined benefit plans sponsored by multiple private-sector employers; and defined benefit plans sponsored by government employers.
The analysts’ work reflects the same kinds of effects that might affect blocks of life insurance policies, blocks of annuities, and life settlement portfolios.

Author(s): Allison Bell

Publication Date: 9 March 2021

Publication Site: Think Advisor

Forecasters Predict COVID-19 Case Counts Will Keep Falling

March 4, 2021March 4, 2021 Mary Pat Campbell

Link: https://www.thinkadvisor.com/2021/03/04/forecasters-predict-covid-19-case-counts-will-keep-falling/

Excerpt:

Forecasters are predicting that U.S. COVID-19 case counts and the U.S. COVID-19 death numbers will continue to improve over the next four weeks.
Most of the forecasters in the COVID-19 Forecast Hub system say weekly new case counts will be somewhere between 350,000 and 450,000 over the next four weeks, compared with an actual number of about 477,000 recorded during the week that ended March 1.
The forecasters are predicting the number of deaths per week will fall to about 6,000 to 8,000, from about 14,000 per week, over that same four-week period.

Author(s): Allison Bell

Publication Date: 4 March 2021

Publication Site: Think Advisor

SEC Sues Morningstar’s Former Credit Ratings Agency

March 2, 2021March 2, 2021 Mary Pat Campbell

Link: https://www.thinkadvisor.com/2021/02/17/sec-sues-morningstars-former-credit-ratings-agency/

Excerpt:

In a rebuke to the SEC lawsuit, Morningstar issued a press release on Feb. 17, saying that MCR “complied with the regulatory requirements in question” while the SEC’s position is “inconsistent with its own rules and … policies” and that the agency has “overstepped its regulatory limitations by imposing requirements that would regulate the substance of credit rating methodologies.”
In an accompanying position paper, Morningstar said that by questioning MCR’s use of qualitative factors in its legacy CMBS ratings model, the SEC is “attempting to dictate the substance of MCR’s rating methodology,” which it is prohibited to do by law. “If the SEC believes additional rules are required — consistent with the analytical independence of a credit rating agency — the agency should go through the rule-making process, not file an action against MCR.”

Author(s): Bernice Napach

Publication Date: 17 February 2021

Publication Site: Think Advisor

Third Wave of COVID-19 Continues to Ease

February 26, 2021February 26, 2021 Mary Pat Campbell

Link: https://www.thinkadvisor.com/2021/02/17/third-wave-of-covid-19-continues-to-ease/

Excerpt:

The seven-day moving average number of daily cases is about 100,000.
The seven-day moving average number of daily deaths has been over 2,000 for 10 weeks.
As of Feb. 11, about 35 million U.S. residents had received at least one COVID-19 vaccine dose.

Author(s): Allison Bell

Publication Date: 17 February 2021

Publication Site: Think Advisor

Saving Social Security Is a Bipartisan Issue: Survey

February 26, 2021February 26, 2021 Mary Pat Campbell

Link: https://www.thinkadvisor.com/2021/02/22/saving-social-security-is-a-bipartisan-issue-survey/

Excerpt:

Most Americans of both political parties agree there Is a retirement crisis ahead.
A majority of those surveyed say COVID-19 has delayed their retirement plans.
Many stated that pension plans are better than 401(k) plans.

Author(s): Ginger Szala

Publication Date: 22 February 2021

Publication Site: Think Advisor

U.S. Death Counts Have Climbed for All Adult Age Groups: Actuary

February 25, 2021February 25, 2021 Mary Pat Campbell

Link: https://www.thinkadvisor.com/2021/02/25/u-s-death-counts-have-climbed-for-all-adult-age-groups-actuary/

Excerpt:

The actual number of deaths for people of all ages has been 18.4% higher than the expected number.
For women, the worst actual-to-expected death ratio is for the 35-44 age group.
For men, the highest percentage of excess deaths was was for the 35-54 age group.

Author(s): Allison Bell

Publication Date: 25 February 2021

Publication Site: Think Advisor

Fed Chairman Vows to Keep Supporting Economic Recovery

February 25, 2021February 25, 2021 Mary Pat Campbell

Link: https://www.thinkadvisor.com/2021/02/23/fed-chairman-vows-to-keep-supporting-economic-recovery/

Excerpt:

The Fed will continue $120 billion in monthly bond purchases and communicate any change.
Powell doesn’t expect any large and persistent increases in inflation; some pickup will be temporary.
Powell says getting the pandemic under control is needed for the economy to reopen.

Author(s): Bernice Napach

Publication Date: 23 February 2021

Publication Site: Think Advisor

MetLife Sees a Baby Bust

February 17, 2021February 17, 2021 Mary Pat Campbell

Link: https://www.thinkadvisor.com/2021/02/08/metlife-sees-a-baby-bust/?kw=MetLife%20Sees%20a%20Baby%20Bust

Graphic:

Excerpt:

Analysts at the Brookings Institution have predicted, based on consumer surveys and demographic data for the period following the 1918 influenza pandemic, that the number of U.S. births could fall by about 300,000 to 500,000 this year, because of health concerns and the effects of the pandemic on the economy.
MetLife has an indication that the Brookings analysts are correct: Enrollees in the group short-term disability plans MetLife runs for employers are filing fewer pregnancy-related STD claims.
MetLife sells employers group STD coverage, and it also administers group STD plans for employers that choose to self-insure.
STD claims for pregnancy-related leave fell 20% between the fourth quarter of 2019 and the fourth quarter of 2020, according to Phil Bruen, a senior vice president for group life and disability product management at MetLife.

Author(s): Allison Bell

Publication Date: 8 February 2021

Publication Site: Think Advisor