Those Dying From Covid-19 Are Least Likely to Own Life Insurance
September 30, 2020 by Leslie Scism
U.S. life insurers are paying out far fewer Covid-19 death claims than initially expected, largely because the virus is disproportionately killing people with little to no insurance.
In the past few weeks, many life-insurance companies have sharply reduced estimates of their exposure, as measured by payouts per 100,000 U.S. Covid-19 fatalities. Estimates have come down by an average of 40% to 50%, according to Credit Suisse stock analyst Andrew Kligerman.
Driving the rapid reduction in exposure are two groups: older Americans and minorities.