Page 20 - Insurance Times July 2021

the family's grief was compounded by "It is conceivable that life insurance to GlobalData, a leading data and
Covid-19 restrictions, which meant only claims in the very early months of 2020 analytics company.
10 people could attend his funeral. were impacted by COVID-19 even GlobalData has revised Japan’s life
The hairdresser called on BT Super to though the specific cause of death was insurance forecast in the aftermath of
not recorded," the report said.
pay out the much-needed funds as she COVID-19 outbreak. As per the latest
raises their children on her own. The report is based on data collected data, Japan’s life insurance industry is
quarterly from 13 insurers, including estimated to decline from JPY31.4
Anthony said the compensation wasn't
Canada Life Assurance Co., Manulife trillion (US$288.2bn) in 2019 to JPY28.3
a big sum to the company, but would
make a huge difference to the Financial Corp., Sun Life Financial Inc. trillion (US$264.6bn) in 2020, in terms
struggling family. and IA Financial Group, and shows of gross written premium (GWP).
COVID-19 individual claims peaked in Pratyusha Mekala, Insurance Analyst
April, 2020, with $41.4-million in
Canadian life insurers paid at GlobalData, comments: “Despite
claims. the economy registering an annualized
out more than $154- The Canadian Institute of Actuaries 11.7% growth in the last quarter of

million from deaths due to began to research the impact of 2020, it contracted by 4.8% in 2020.
COVID-19 on the life insurance industry Emergency measures introduced by
COVID-19 in 2020 in April of last year to analyze whether the government and unfavorable
Canadian insurers paid out $154.2- the overall level of life insurance claims economic environment impacted
million in individual and group life was different than in previous years, consumer spending, including life
insurance claims from deaths related and whether COVID-19 was a insurance.”
to COVID-19 in 2020. significant cause of life insurance claims According to the data released by the
A report released this week by the in Canada. Life Insurance Association of Japan,
Canadian Institute of Actuaries said The latest report shows December was 6.74 million new business individual
individual life insurance claims the second-highest month for insurance policies were sold during
increased in almost every month of individual COVID-19 claims in 2020 as April-September 2020, registering a
2020 compared with the the country entered into a second year-on-year decline of 35.6%.
corresponding month in 2019, with wave of the virus, causing individual life Stringent containment measures
insurers paying out $139.05-million for insurance claims to climb. Claims in impacted sales through broker and
3,179 individual claims where COVID- December hit $30.8-million, about 75 agent channels that mandate face-to-
19 was identified as the cause of death per cent of the peak April level. face interactions. Sales representatives
in 2020.
COVID-related claims in December remain the dominant channel for life
At the same time, group insurance accounted for about 10 per cent of the insurance policy sales in Japan with
policies, which are typically provided total individual life insurance claims nearly 50% share.
through employers, paid out $15.17- that month, down slightly from the In addition, persistent negative rate in
million for 754 claims owing to COVID- peak in April of 12.9 per cent, but up domestic market and decline in
19 deaths. significantly from less than 1 per cent interest rate in overseas markets have
While the first reported case of COVID- of total claims in August. created an uncertain business
19 in Canada was in early January, environment for life insurers. As a
2020, many Canadians were not aware Life insurance industry in result, insurers have reduced or
of the symptoms for the virus until Japan to remain below temporarily suspended sales of foreign-
mid-March when the World Health currency denominated policies.
Organization declared the virus a pre-COVID-19 levels until To mitigate the impact of the
pandemic. 2024 pandemic, life insurers have launched
The institute's report said life The life insurance industry in Japan is online platforms to generate sales.
insurance claims were also higher in forecasted to recover from 2021 Leading insurers such as Meiji Yasuda
the first three months of 2020 than the onwards and increase at a compound Life Insurance and Dai-ichi Life Holdings
year prior, which could suggest there annual growth rate (CAGR) of 1.8% launched online sales of life insurance
were COVID-19 deaths that were not during 2020-2024. However, it will still policies post the onset of the
recognized at that time. be lower than 2019 figures, according pandemic. T

20 The Insurance Times, July 2021