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Old 03-30-2020, 09:49 AM
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As a WC carrier, we don't see the impact to claims being meaningful, it will be more of a premium event.

We actually think we invented a new type of claim -- lost time only. For the vast majority of "claims" the medical care will be minimal --rest at home. So we may pay indemnity but not medical (or very little medical).

There is also the compensability issue raised above. For first responders, there is increased likelihood of having contracted COVID "in the course of employment" but each state defines occupational disease differently.
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Old 03-30-2020, 09:50 AM
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Originally Posted by Maphisto's Sidekick View Post

I wouldn't be surprised if the TRIPRA reauthorization debate later this year gets complicated with a call for a federal backstop on future pandemic losses.
I thought it was already renewed?

EDIT: Yes, it was: Tripra renewed early
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  #43  
Old 03-30-2020, 09:55 AM
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P&C Worker Comp: Probably not a big direct impact from COVID-19 claims, though I suspect some. However, could be significant other impacts:

Frequency: Economic downturns affect frequency. Might be different this time as itís not just layoffs but whole companies/industries shutting down. Lots of people might look to WC as potential wage replacement.

Return to work opportunities likely diminished substantially.

Medical: Seems likely there will be delays in treatment due to stressed healthcare system. Can turn moderate claims into big claims.
Return to work impacted by no jobs to go back to, but also by the lack of availability of WC physicians. We are starting to have concerns that otherwise rehabiliated workers won't be able to see a doctor to get cleared.

In past recessions, we have seen frequency decline. I think a lot of this has to do with the fact that marginal workers are employed when we have full employment, but aren't during a recession, so we have less claims from people who are simply unqualified for their job and end up getting hurt doing stupid things. But, I suspect it may be different this time because of the scale of the downturn.
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Old 03-30-2020, 11:15 AM
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Annuities to boom, Life Ins to stop (high mortality uncertainty)?
Huh? I expect to see the opposite.

Life Insurance to become more popular. Carriers potentially charging more for older insureds, but not much change to rates for younger applicants.

Annuities to become less popular, given low interest rate environment forcing insurers to cut crediting rates.
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Old 03-30-2020, 11:18 AM
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Reduction in Indexed Annuity sales:

Higher implied volatility increases cost of hedge options
Low interest rates reduces option budget
This double-whammy causes carriers to offer very unattractive caps.
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Old 03-30-2020, 11:18 AM
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Life/Annuities:

Credit migrations and defaults cause US companies' RBC ratios to drop.
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Old 03-30-2020, 11:20 AM
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Life/Annuities:

Due to high unemployment, insurers to see increased cash outflows driven by policy loans and free partial withdraws.

Any unemployment riders to see increased exercise.
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  #48  
Old 03-30-2020, 11:27 AM
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Good piece from some insurance law experts on business interruption and coronavirus:

https://www.zelle.com/Commercial_Pro...nd_Coronavirus
Some topical webinars coming from these guys:

https://myemail.constantcontact.com/...id=1VKGiH9icYs

I haven't tried to register for one yet.
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Old 03-30-2020, 04:05 PM
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curious: what kind of E&O risks do agents/brokers have in this: e.g. the "you should have told me pandemics weren't covered" types of disputes.
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Old 03-30-2020, 04:07 PM
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curious: what kind of E&O risks do agents/brokers have in this: e.g. the "you should have told me pandemics weren't covered" types of disputes.
I'd say relatively low risk, as it's not like agents had a widely offered pandemic product to sell to insureds.
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