As long-term COVID risks rise, life insurers impose curbs: Report

Some insurers are imposing waiting periods before COVID patients can apply for coverage, industry sources tell Reuters. Global life insurers are taking steps to curb payouts stemming from the coronavirus pandemic, including long-term health consequences that are not fully understood, industry sources told the Reuters news agency. Life insurers, including Prudential Financial Inc, and Aviva PLC, are now imposing waiting periods before COVID-19 patients, including those who have recovered, can apply for coverage, executives and spokespeople said. “We have attempted as a company to strategise about modelling this and have made some headway but are far from the crystal ball that is able to predict this,” said Dr Paulo Bandeira Pinho, chief medical director of Optimum Re Insurance Co. Optimum has met with life-insurer customers, including Prudential Financial, to map out long-term risks and possible financial impacts. “As the long-tail effects become better understood, our approach to underwriting may adjust as necessary.” Since April, British life insurer LV= has postponed applications from anyone who was diagnosed with COVID-19, experienced symptoms or lived with someone who got sick, according to an underwriting policy on its website.