• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

Life insurers shift to pre-pandemic norms after COVID vaccine roll-outs

September 3, 2021 by David Barret Leave a Comment

September 3, 2021

By Carolyn Cohn and Noor Zainab Hussain

LONDON (Reuters) – The roll-out of COVID-19 vaccinations is making life insurers more enthusiastic about offering cover to those with underlying health conditions – some without even knowing whether customers have been vaccinated.

Life insurers were imposing waiting periods to buy cover in the early stages of the pandemic for certain age groups, as well as for those who had been infected, saying the long-term health consequences of coronavirus were not fully understood.

But now that vaccines are prevalent in major economies such as Britain and the United States, life insurers see fewer risks.

Helen Croft, head of underwriting strategy at AIG Life, said the insurer had previously been more cautious in offering cover as a result of the pandemic, but the efficacy and widespread use of the vaccine meant it could provide insurance for more customers.

“The vaccine take-up has been excellent,” she said. AIG Life did not check if individual customers have been vaccinated, with Croft pointing out the insurer did not ask customers about other inoculations, such as for flu.

“I don’t think it’s necessary to be asking about the vaccine – the population level take-up gives us enough comfort,” she said.

Insurers such as LV=, Aviva and Zurich also said they did not ask vaccination questions, with Zurich highlighting the possible limitations of inoculation, such as long-term effectiveness or the impact of new variants.

Regardless of vaccination status, customers with underlying health conditions may pay up to five times the standard rate for life insurance products, sources said.

A reduction in the hospitalisation and death rate as a result of vaccination has meant that “almost all” insurers in Britain have reversed previous COVID-19 restrictions on life cover, said Phil Jeynes, director of corporate sales at insurance broker Reassured.

Britain was one of the first countries to roll out a vaccination programme and almost 80% of all over-16s are fully vaccinated, according to UK government figures.

Premiums have stayed much the same during the pandemic, Jeynes added. Rather than raising rates, insurers postponed providing cover for those above a certain age, with some underlying health conditions or who were recovering from COVID-19, industry sources said.

Life insurance premium volumes dropped by 11% in Britain and by 0.1% in the United States in 2020, according to Swiss Re. Sharp falls in household incomes due to lockdowns and job losses hit demand for life insurance last year, the reinsurer said in a recent report.

Swiss Re expects strong life insurance growth this year and next due to the economic recovery and increased consumer awareness of risk.

In the United States, where more than half of the population is vaccinated, major life insurers Prudential Financial and Lincoln told Reuters they did not ask about vaccines.

The Insurance Compact, standards adopted by 47 U.S. states, said it did not currently allow insurers to ask vaccination questions as state insurance regulation has not yet set public policy around the vaccine and underwriting.

ASKING QUESTIONS

However, some insurers in Britain are asking customers whether they have been inoculated, particularly if their health condition makes them more vulnerable to COVID-19, and this could affect the cost or size of their cover.

“For those that have been fully vaccinated, our risk appetite will be higher,” said Rose St Louis, protection director at Scottish Widows. “We may be able to offer improved terms to those who have had both vaccines.”

Legal & General typically imposes a 12-month waiting period on customers who are clinically vulnerable and where the impact of COVID-19 may be life-threatening.

“To avoid postponing applications for this 1% of new customers, we will now ask whether or not they have had their required vaccine doses…allowing us to give cover to customers when it would otherwise not be available,” an L&G spokesperson said by email.

Unvaccinated vulnerable customers would be declined cover for now, though allowances would be made for those who could not have the shot for medical reasons such as pregnancy, L&G said.

Insurers need to get clearance from their reinsurers for any underwriting changes they make, as reinsurers may otherwise be unwilling to provide that cover.

L&G said its reinsurers agreed with its approach, without naming them.

One global reinsurer, who declined to be identified, said it was supporting the stance of “several insurers” in Britain who were insuring customers in higher risk medical groups for larger amounts of cover, if the customers provided evidence that they were fully vaccinated.

Clive Allison, director, life and pensions at consultants EY, said the need for vaccine questions may be short-lived.

“There’ll be a convergence where most adults will have been double-vaccinated,” he said. “The ones that haven’t are most likely to be in the younger age bracket, and typically are not looking to take out insurance cover.”

(Reporting by Carolyn Cohn in London and Noor Zainab Hussain in Bengaluru; Editing by Mike Harrison)

Source Link Life insurers shift to pre-pandemic norms after COVID vaccine roll-outs

David Barret
David Barret

Related posts:

  1. China’s Alibaba to invest $15.5 billion towards “common prosperity”
  2. Stars return to Venice red carpet as film festival opens
  3. South African train brings COVID-19 vaccines closer to people
  4. Marvel’s Blade director has been confirmed – by the man himself

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • Beam Of Light Shone All The Way Through A Human Head For The Very First Time
  • “On My Participation In The Atomic Bomb Project”: Einstein’s Powerful Letter Goes Up For Auction For $150,000
  • Watch Friendly Dolphins Help Lead A Lost Humpback Whale Into Deeper Waters
  • World’s Largest Digital Camera Snaps 2,104 New Asteroids And Millions Of Galaxies Within A Few Hours
  • Cat Or Otter? The Jaguarundi Looks Like Both
  • “The Sea Shall Flow To Jackdaw’s Well”: Old English Mermaid Legend Traced Back Centuries
  • The Fungus Blamed For “Tutankhamun’s Curse” Could Make A Potent Anti-Cancer Drug
  • Space Might Be A Byproduct Of Three-Dimensional Time
  • “Jigsaw”-Like Fresco Made Of Thousands Of Fragments Reveals Artistic Traits Not Seen In Roman Britain Before
  • Frequent Nightmares Are A Worrying Sign Of Early Death And Accelerated Aging, Says New Study
  • UK To DNA Test All Newborn Babies In Plan To Predict And Prevent Disease
  • IFLScience We Have Questions: Why Does Snow Sometimes Look Blue?
  • New Nimbus COVID Variant Present In The UK, Infections Could Spread This Summer
  • Scientists Have Finally Measured How Fast Quantum Entanglement Happens
  • Why Earth’s Magnetic Pole Reversals Are So Fascinating
  • World First Artificial Solar Eclipse Created, The “Closest Thing” To HIV Vaccine Gets FDA Approval, And Much More This Week
  • “Remarkable” Pattern Discovered Behind Prime Numbers, Math’s Most Unpredictable Objects
  • People Are Only Just Learning What The World’s Most Expensive Cheese Is Made Of
  • The Physics Behind Iron: Why It’s The Most Stable Element
  • What Is The Reason Some People Keep Waking Up At 3am Every Night?
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version