Coronavirus

Life insurers plan to impose restrictions on Covid-19 payouts

According to Reuters, global life insurers are planning to curb payouts arising from the pandemic

Global life insurers are reportedly planning to impose restrictions on payouts arising from the pandemic, including long-term health conditions, according to industry sources who spoke to Reuters.

Among the long-term conditions resulting from Covid-19 are severe respiratory problems, organ damage, circulatory impairment and chronic fatigue.

Prudential Financial and Aviva are among the insurers set to impose waiting periods before Covid-19 patients, including those who have recovered, can apply for coverage, with some firms also limiting coverage based on age group.

This follows news that reinsurers are calling on new safeguards from life insurers before they backstop.

Prudential currently has a minimum 30-day waiting period for all recovered Covid-19 patients and is negotiating with reinsurers, such as Optimum Re Insurance, to plan ahead regarding long-term risks and possible financial outcomes.

Speaking to Reuters, the firm’s VP of operations Keith Bexell, said: “Ultimately, many of the long-term implications of the pandemic are still unknown.

“As the long-tail effects become better understood, our approach to underwriting may adjust as necessary.”

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