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A Review of Catastrophic Risks for Life Insurers

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  • Alex Huynh
  • Aaron Bruhn
  • Bridget Browne

Abstract

Catastrophic mortality events are characterized by a sudden and concentrated increase in mortality and as such present a major risk to life insurers. Such events include pandemics, war, natural disasters, terrorist attacks, and industrial, transport, and other accidents. Of these, pandemics arising from influenza are considered the most significant threat to the life insurance industry due to their capacity to cause a major increase in claims. We review the features and mortality implications of an influenza pandemic for life insurers, and describe a range of other risks that are likely to emerge as well.

Suggested Citation

  • Alex Huynh & Aaron Bruhn & Bridget Browne, 2013. "A Review of Catastrophic Risks for Life Insurers," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 16(2), pages 233-266, September.
    • Handle: RePEc:bla:rmgtin:v:16:y:2013:i:2:p:233-266
    DOI: 10.1111/rmir.12011
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    References listed on IDEAS

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    Cited by:

    1. Timothy F. Harris & Aaron Yelowitz & Charles Courtemanche, 2021. "Did COVID‐19 change life insurance offerings?," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 88(4), pages 831-861, December.
    2. Fu-Wei Huang & Panpan Lin & Jyh-Horng Lin & Ching-Hui Chang, 2023. "The impact of war on insurer safety: a contingent claim model analysis," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-6, December.
    3. Robert W. Klein & Harold Weston, 2020. "Government insurance for business interruption losses from pandemics: An evaluation of its feasibility and possible frameworks," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 23(4), pages 401-440, December.
    4. Eckhard Platen & David Taylor, 2016. "Loading Pricing of Catastrophe Bonds and Other Long-Dated, Insurance-Type Contracts," Papers 1610.09875, arXiv.org.
    5. Chen, Fen-Ying & Yang, Sharon S. & Huang, Hong-Chih, 2022. "Modeling pandemic mortality risk and its application to mortality-linked security pricing," Insurance: Mathematics and Economics, Elsevier, vol. 106(C), pages 341-363.

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