The covid-19 pandemic is impacting insurance premiums across the globe. Life insurers in India are under pressure to increase term life insurance premiums by their reinsurers as a result of increase in mortality rate in the face of the pandemic.
This could see term life insurance premium increase by about 40% in 2021.
Ideally, reinsurers have a well-spread portfolio across geographic which enables them to cushion the impact of any calamity or incidents causing death.
Covid-19 pandemic is a unique situation because its global. This has impacted the mortality assumptions made by the reinsurers causing them to now reassess their risk portfolio and modify their assumptions.