Insurers grapple with evolving pandemic risk
Insurers are having a tough time modelling pandemic risk as they grapple with countless variables that could influence eventual claims outcomes. “The novelty, unpredictability and severity of this pandemic, as well as its progression through multiple waves and variants, make it extremely difficult to accurately model how the pandemic will progress,” noted Discovery Group Risk, during a presentation on its 2021 claims experience. The sharp rise in claims proves that mortality and morbidity risks are significantly increased by Covid-19 infections, and flags certain demographic, health and lifestyle factors for contributing to the severity of the disease.