U.S. insurance companies pay far less compensation than initially expected for the families of corona patients who passed away, the Wall Street Journal reports. “In recent weeks, companies have sharply reduced their estimates by 40 percent to 50 percent in terms of the amount of financial exposure.” “Because of the virus,” Credit Suisse stock analyst Andrew Kligerman told the newspaper.
The main reason why insurance companies are likely to be less affected by the virus is that many Corona victims are patients who do not have life insurance, especially minorities. Another population of deaths from the virus are the elderly whose life insurance policies are relatively low.
Older people, over the age of 65, have smaller life insurance policies than younger people who are still in the labor market and seek to protect their spouses and children from the sudden loss of income they will suffer if they die, for example as long as they are required to cover mortgages and finance higher education. .
According to the Centers for Disease Control and Prevention (CDC), by mid-September, about 80 percent of Corona’s deaths in the United States were of patients over 65. In addition, minorities, mostly African-Americans, were also heavily affected. -CDC, more than 20% of Corona deaths were of non-Hispanic black people, above their representation in the population.
Many insurance companies “do not turn to blacks at all because they think the latter are not interested in large life insurance policies,” Eugene Mitchell, who previously headed a unit at a New York life insurance company that increased sales of larger policies, told the Journal To African-Americans.
Examination of the data reveals that there is an overlap between the two groups – members of minorities and the elderly. Using CDC data, the Brookings Institution found that black Americans aged 85 and over die from Cubid 19 at a rate of 880 per 100,000 population, compared to 436 whites. The analysis shows that in every age category black people died from corona at about the same rate as white people – more than a decade older than them.
Equitable chief financial officer Anders Malmstrom explained to analysts the decision to reduce compensation estimates as a result of the virus by saying that many of the dead were not insured at all: “Later on we expect this trend to continue.”
*The article has been translated based on the content of Source link by https://www.calcalist.co.il/money/articles/0,7340,L-3851670,00.html
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