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Second wave of Covid-19: Rising death claims keep insurers on tenterhooks

Most life insurance companies have set aside provisions for such claims, over and above what they had set aside during the first wave.

Covid insurance
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According to a report by Motilal Oswal, while the total Covid-related deaths reported in FY21 was 163,000, the fatality count has already touched 152,000 in FY22 so far

Subrata Panda Mumbai
An alarming rise in deaths due to Covid in the second wave of the pandemic has kept life insurers on tenterhooks. A rise in fatalities will eventually lead to an increase in Covid-related death claims, denting profitability.
 
Most life insurance companies have set aside provisions for such claims, over and above what they had set aside during the first wave.
 
Despite higher provisions, the second wave has come as a shock to the life insurance industry. Many believe they may need to increase their provisions, depending on the severity of the impact of the wave on the claims

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First Published: Jun 03 2021 | 6:10 AM IST

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