What's Happening?
At the LIMRA Annual Conference, insurance executives are set to discuss the evolving factors reshaping mortality models post-COVID. The panel, titled 'Navigating Mortality Risk: Strategic Intelligence for Business Impact,' will explore new forces impacting mortality, including mental health issues, GLP-1 drugs, climate change, and increased natural disasters. Karen Terry, corporate vice president of Insurance Research at LIMRA, highlighted the need to adapt traditional models due to shifts in mortality patterns caused by the pandemic and other factors. The panel will feature experts from the Reinsurance Group of America, focusing on how these changes affect pricing, reserves, reinsurance demand, and profitability.
Why It's Important?
The discussion is crucial for the insurance industry as it faces challenges in accurately predicting mortality rates, which directly impact financial planning and product offerings. The pandemic has altered mortality expectations, necessitating a reevaluation of existing models. Factors like climate change and pharmaceutical innovations further complicate predictions, affecting insurers' strategic planning and risk management. Understanding these dynamics is essential for insurers to maintain profitability and consumer trust while adapting to new health and environmental realities.
What's Next?
The panel aims to provide insights into adapting mortality models to account for emerging risks and trends. Insurers may need to innovate their products and strategies to address these changes effectively. The session will emphasize the importance of integrating non-traditional factors into mortality analysis, potentially leading to new approaches in insurance underwriting and risk assessment. As the industry navigates these shifts, ongoing research and collaboration will be key to developing robust models that reflect current and future mortality risks.
