Insurance coverage Information: COVID cuts life expectancy, will increase claims
The new year already gives us a lot to talk about in the insurance industry. With the world still in the grip of COVID-19, we now have nearly two years of pandemic data to consider. But how will it be used to change insurance risk models in the future?
In our first analysis of insurance news for 2022, Abbey Compton and I discuss how data is being applied across the industry. For example, life expectancy has fallen by nine months in the UK and by 1.8 years in the US since the pandemic. These sobering declines and record life insurance claims are forcing insurers in L&A and group and voluntary benefits to change the way they assess risk for their customers.
Data sharing and advanced analytics are also used to assess and mitigate health and safety risks in real time. However, the data and prescriptive analytics that can help a customer avoid danger may not always capture the customer’s attention.
We’re also talking about a price data point cited by the UK’s Financial Conduct Authority. They say consumers could save £4.2 billion over the next 10 years. That’s thanks to a new rule requiring insurers to offer consumers renewing home and car policies the same rates they offer to new customers.
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