AIG Sees Mortality Reporting Delays
May 13, 2020 by Allison Bell
Executives at American International Inc. say COVID-19 might be affecting the flow of information the company needs to pay life insurance claims.
Kevin Hogan, chief executive officer of AIG’s life insurance and retirement unit, talked about that concern Tuesday, in a conference call the company held to go over first-quarter earnings with securities analysts.
Early in the first quarter of the year, reported mortality for the insureds was lower than what AIG had built into its pricing, Hogan said.
“Later in the period, what we did notice is that there were some delays in reporting, generally related to the issuance of certain documentations,” Hogan said.
AIG added an item for life insurance claims that are likely to come in, but have not yet come in, because of the worries about the lag in reporting, Hogan said.