Virus-Death Surge May Mean $7.2 Billion in Life Insurance Claims
Firefighters and paramedics transport a potential COVID-19 patient to a hospital on April 29.
Photographer: Alex Edelman/AFP via Getty Images
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U.S. life insurers may face as much as $7.2 billion in claims if coronavirus deaths rise to the high end of projections of 150,000, according to Aite Group LLC.
The estimate includes costs for policyholders between the ages of 56 and 74, which are projected to reach as much as a combined $4.1 billion for individual and group plans, the researcher said in a study released Thursday. Life insurers are in good shape and should be able to manage surging costs, according to the report’s author, Samantha Chow.