The U.S. life insurance industry could handle a severe influenza pandemic reasonably well.
Actuaries at the Society of Actuaries, Schaumburg, Ill., have published that prediction in a new report on efforts to model the effects of a pandemic.
Tom Ewalds, an SOA representative, briefed regulators on the report here during the summer meeting of the National Association of Insurance Commissioners, Kansas City, Mo.
A “moderate” pandemic might lead to a $2.8 billion net effect on claims, and a “severe” pandemic might lead to a $64 billion net effect and also have hard-to-predict effects on the general economy, Ewalds said.
Those predictions compare with total 2005 life claims volume of $108 billion.
The report authors came up with the “net claims” figures by subtracting anticipated reserve releases, tax savings and reinsurance credits from gross claims.