Rajkotupdates. news is a blog that provides the latest news on different subjects. Recently, they published an article on the current Covid-19 status in India and Covid-19 affecting Life Insurance standards. Recently Corona Virus third wave has attacked India. This wave is not as severe as the previous ones, but it still can make a difference. Corona Virus’s previous two waves have affected everyone in the whole country.
Corona Virus Third Wave in India
Recently, Dr. Vipin Srivastava from Hyderabad declared that Corona Virus third wave has attacked India. Dr. Vipin Srivastava has been working on Corona Virus and patients for the past 15 months. He pre-cautioned the nation that this corona wave will not be as strong as the previous one, but still can make a difference.
So, Dr. Vipin Srivastava advised everyone to keep a 6-feet distance and stay in quarantine in case of any issues. With the attack of the coronavirus, third wave different companies will be affected. Today we will talk about the coronavirus third wave affecting Life Insurance.
There are different opinions and theories regarding the Coronavirus future. Some think that corona will be ended after a few years permanently, some think that it will stay with us, and we will be used to it, and some others think that the coronavirus will attack after sometimes, on-off scenario.
Life Insurance Company Reaction to Corona Virus
Everyone knows Life Insurance companies will pay the subject in case of accident or demise according to the contract. As you can see in the first coronavirus wave and second coronavirus waves a lot of people got died due to the fatal virus. So, Life Insurance companies try to keep in sight by increasing the market rate.
Different companies approached different techniques. Some life insurance companies changed their terms and policy, and some other companies changed the pricing to make it less and affording people. Otherwise, Life Insurance companies must pay people more than they earn, which could eventually lead to the closure of the company.
So, companies approached different plans and tried to survive in the first two corona waves. But life reinsurers are not going to repeat the same mistakes repeatedly because no one knows when the coronavirus will be dead. We will talk further about life reinsurers’ behavior toward Coronavirus third wave and techniques to stay alive against the coronavirus.
Corona Affecting Life Insurance
As I have described earlier, the corona has severely affected Life Insurance companies. These companies had taken a lot of losses in the previous two corona waves, but now these companies wanted to be ready first. Previously, when the coronavirus attacked the World, everyone purchased Life Insurance and Life Insurance companies did not take any precautions or do analysis, which costs them a lot.
Now, during the second wave of coronavirus life insurance companies took a step and increased the premium rates for life insurance which makes them stabilize a bit. But now the coronavirus is attacking again in the form of a third wave and life insurance companies are not coming slow. They will counterattack the coronavirus and people who are thinking about an advantage over life insurance companies.
Increase in rates during Corona’s second Wave
As I discussed earlier, during the first wave life insurance companies bear a huge loss, so they took some precautions for the second wave. Reinsurers increase the rate by 20-30 percent to stay on the safe side and regain the loss. But they still were in crisis during the corona second wave. A lot of small companies shut their life insurance business because they were affected by milestones.
Different companies increased rates after the first wave and again after the second wave. And they are also thinking again about increasing the premium rates before the third wave. Companies increased the life insurance rate in the 1st quarter of 2021 by 7-9 percent. And this increase was added by 11-13 percent in the 4th quarter of 2021.
Increase in rates during Corona’s third Wave
Corona Virus affected Different companies including Life insurance companies. Life Insurance companies bear a huge loss during the 1st wave of the coronavirus. Also faced loss during 2nd wave of coronavirus. Now, these companies are taking precautions regarding Coronavirus third wave. Recently, Dr. Vipin Srivastava announced that the Coronavirus’s third wave will attack.
Life Insurance companies are approaching different techniques and policies to deal with the corona third wave. Some are increasing the rates and others are waiting for results about this virus because Dr. Vipin Srivastava said that this wave of coronavirus will not cause damage as much as previously. So, they are waiting for the coronavirus to attack first.
According to reports Life Reinsurers are going to increase the premium rate by 40-50 percent during the third wave of the coronavirus. Life insurance companies have increased their rates to recover the previous loss and gain profit as well.
Life Insurance Companies with different policies
Most companies have approached the two main policies regarding life insurance. The first category is to increase the premium rates of life insurance and the second is to wait until the corona reacts. This could create both massacre and relief for companies.
If corona attacked hard then the profitable and successful companies will be the ones who are increasing the rates, but if corona does not strike hard during its third wave, then the companies who are not increasing the rates.
When will Corona Stop?
There are different theories, but no one knows the end of the coronavirus. Most people think that we will get used to the coronavirus just like the normal flu. But others think that it will end in a few years. And a lot of others think that the coronavirus will attack after time gaps or with the change of season. If we see the other side of the picture then, the people who think corona will remain forever, but we will get used to it, and the ones thinking that it will attack from time to time are similar. Because most viruses attack with the change of season.
Life Reinsurers were affected by 1st and 2nd coronavirus waves, but now they are taking precautions before corona third virus. Some life reinsurers increased the premium rates by 40-50 percent while others are still waiting for the coronavirus to strike first.