Parametric insurance: A captivating solution
Parametric policies, which pay based on the magnitude of an event, can bridge coverage gaps that are difficult to insure with a traditional indemnity policy.
Life insurers and annuity writers are now beginning to understand the impact of the COVID-19 pandemic on their lines of business, as mortality data for the year 2020 is reported and analyzed. While the pandemic has affected different carriers in different ways, future mortality rates are a key assumption for annuity writers.
With Milliman’s acquisition of Ruark Consulting in December 2021, the industry’s leading variable annuity mortality study has been rebranded as the Milliman Variable Annuity Mortality Study. The study is based on data from 2008 through 2020, totaling $674 billion in account value as of the end of the study period, with over 1 million deaths across 19 companies.
The 2021 study reveals that mortality increased by 11% as a result of the onset of COVID-19, and that this had and may continue to have a material impact on the variable annuity industry.
Other study highlights include:
Detailed study results, including company-level analytics, benchmarking, and customized assumption models calibrated to the study data, are available for purchase by contacting Timothy Paris at (312) 873-9719 or using this contact form.