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Disruption of Life Insurance Profitability in the Aftermath of the COVID-19 Pandemic

Author

Listed:
  • Maria Carannante

    (Department of Pharmacy, University of Salerno, Via Giovanni Paolo II, 132, 84084 Fisciano, Italy
    These authors contributed equally to this work.)

  • Valeria D’Amato

    (Department of Pharmacy, University of Salerno, Via Giovanni Paolo II, 132, 84084 Fisciano, Italy
    These authors contributed equally to this work.)

  • Paola Fersini

    (Department of Business and Management, Luiss Guido Carli, Viale Romania, 32, 00197 Rome, Italy
    These authors contributed equally to this work.)

  • Salvatore Forte

    (Faculty of Law, Giustino Fortunato University, Via Raffaele Delcogliano, 82100 Benevento, Italy
    These authors contributed equally to this work.)

  • Giuseppe Melisi

    (Department of Law, Economics, Management and Quantitative Methods, University of Sannio, Piazza Guerrazzi, 82100 Benevento, Italy
    These authors contributed equally to this work.)

Abstract

Life insurance profitability depends on reliable mortality risk projections and pricing. While the COVID-19 pandemic has caused disruptions around the world, this is a temporary mortality shock likely to dissipate. In this paper, we investigate the long-run impact of COVID-19 on life insurance profitability. Due to the long-run dynamics of the mortality characterised by a decreasing effect of the COVID-19 mortality acceleration, we suggest proactive mortality risk management by implementing prompt premium adjustments, in order to increase the resilience of the business.

Suggested Citation

  • Maria Carannante & Valeria D’Amato & Paola Fersini & Salvatore Forte & Giuseppe Melisi, 2022. "Disruption of Life Insurance Profitability in the Aftermath of the COVID-19 Pandemic," Risks, MDPI, vol. 10(2), pages 1-16, February.
    • Handle: RePEc:gam:jrisks:v:10:y:2022:i:2:p:40-:d:747596
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    References listed on IDEAS

    as
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    Cited by:

    1. Anna Rita Bacinello, 2022. "Special Issue “Quantitative Risk Assessment in Life, Health and Pension Insurance”," Risks, MDPI, vol. 10(4), pages 1-2, March.
    2. James Jones & Timothy E. Trombley & Michael P. Trombley, 2022. "Impact of cultural tightness on vaccination rate," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 25(3), pages 367-389, September.

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