What's Happening?
A panel at the LIMRA Annual Conference is set to explore the evolving factors affecting mortality models in the insurance industry post-COVID. The discussion will focus on new research and trends impacting mortality, including mental health issues, the effects of GLP-1 drugs on obesity, and climate change. The COVID-19 pandemic has disrupted traditional mortality models, leading to increased mortality rates that have not returned to pre-pandemic levels. The panel, moderated by Karen Terry of LIMRA, will include experts from the Reinsurance Group of America, who will discuss the implications of these changes for insurance pricing, reserves, and profitability.
Why It's Important?
The insurance industry relies on accurate mortality models to set premiums, manage reserves, and ensure profitability. The disruption caused by the COVID-19 pandemic and other emerging factors such as climate change and pharmaceutical innovations necessitates a reevaluation of these models. Understanding the new forces shaping mortality is crucial for insurers to adapt their strategies and maintain financial stability. The panel's insights will help insurers navigate the challenges posed by shifting mortality patterns and develop innovative solutions to manage long-term risks.
What's Next?
Insurers will need to incorporate new data and trends into their mortality models to accurately assess risk and set appropriate premiums. The industry will continue to monitor the impact of factors such as climate change, mental health, and pharmaceutical advancements on mortality rates. The insights from the LIMRA panel will inform strategic planning and product development, enabling insurers to better manage the evolving risks associated with mortality.
