U.S. Life Insurers Put Hold Claims to Avoid Coronavirus Risk

U.S. life insurers are trying to contain their own dangers to coronavirus by imposing waiting intervals for applicants who’ve traveled to regions with widespread pandemics, industry consultants stated.

U.S. Life Insurers Put Hold Claims to Avoid Coronavirus Risk

Life insurers are worried about insuring U.S. clients who’ve traveled to nations that the U.S. Centers for Disease Control and Prevention (CDCP) deems most concerning for contagion risk, along with China, Iran, and many European countries.

Lincoln Financial Monday imposed a 30-day ready period prior to issuing policies to most applicants who’ve traveled to those areas, a spokesman stated.

American International Group, stated this month it could postpone selections about life insurance applications from clients who traveled to several affected regions, along with Italy and South Korea, till they had been again in the U.S. for 30 days.

AIG is closely watching ongoing advancements and following recommendations from the World Health Organization (WHO) and CDCP.

The spread of the coronavirus across the U.S. might push insurers towards unprecedented steps, said Tim Luedtke, an actuary and professor at Temple University in Philadelphia.

A historic stock market drop and rate of interest cuts will weigh life insurers’ earnings, reserves and capital, Fitch stated Tuesday.

Firms that carry out medical exams of life insurance coverage applicants are changing tips for workers’ safety, spurring more delays.