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Insurers' provision pool balloons as fatalities spike in second Covid wave

Claims in 2nd wave were 3-4 times the volume seen in first wave, says an insurer

Insurers' provision pool balloons as fatalities spike in second Covid wave
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Although the second wave turned out to be much worse than what the industry had anticipated, insurers, so far, have not figured out if they would need more provisions in case a third wave occurs.

Subrata Panda Mumbai
The impact of the second wave, which saw higher fatalities than the first one, coupled with elevated levels of claims that life insurers have received in Q1, resulted in insurers increasing their provision pool. This is over and above the amount they had set aside at the beginning of the financial year.
 
Insurers, in the April-June quarter of FY22, have seen a huge spike in death claims due to Covid. And, experts said, Covid death claims in Q1 are higher than the cumulative Covid-related death claims in the entire FY21.
 
The overall claims burden has also increased due

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First Published: Jul 22 2021 | 6:10 AM IST

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