Canadian life insurance claims increased in April and May: CIA
BY Katie Baker ___The Canadian Institute of Actuaries (CIA) has released a report taken from 13 insurance companies in Canada from January to June 2020 shows that individual life insurance claims increased in April and May.
The increase took place at the height of the first wave of COVID-19, compared to the same period in 2019, whilst also finding that the percentage of claims that could be attributed to COVID-19 also reached over 12% in April.
Some of the companies surveyed provided group insurance data, however the same trend was not apparent.
In general, group insurance represents a younger population, with overall healthier populations, so the impact of COVID-19 may not have been as significant when compared to individual insurance.
Since the peak of claims was contained to a relatively short time, it falls within the range of volatility that the insurance industry is prepared for.
Although as Canada enters a second wave of COVID-19, it is important to continue to track aggregate monthly data.
A second phase of the report is underway, in which the CIA is tracking seriatim data and will produce more detailed analysis and models in line with mortality tables.
Keith Walter, FCIA, Chair of the CIA’s Research Council commented: “Actuaries are responsible for modelling and monitoring the reserves and health of the industry, and the CIA is assisting in continuing to track and analyse data. It will be very important that we do this during the second wave so that actuaries can fulfil their important function.”
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