As most people cancel their life and trauma insurance before retiring, the majority of life and trauma policyholders are younger and more likely to survive COVID-19. For this reason, life insurers are not expecting an increase in claims as a result of COVID-19. In this article both Partners Life and Cigna confirm that they have pandemic insurance in place, but also remind customers that they have relatively low levels of insurance on those that are most likely to be affected. Click here to read more :
"From a claims point of view, we don't believe it will come across in our claims experience on the types of products we sell," said Naomi Ballantyne, founder and managing director of Partners Life.
Most people cancelled their life and trauma insurance long before they retired, meaning most policyholders were younger, and had a very high likelihood of surviving a Covid-19 should they be infected.
I expect all New Zealand life and health insurers are in good shape to meet all claims.