Member Article

Ebola and Life Insurance

With the growing concern about the possible spread of the Ebola Virus Disease (Ebola), Michael Ward, managing director of PayingTooMuch.com comments on how it could impact on life insurance in the UK.

“For policies already in force, if a death occurs as a result of Ebola current life insurance would pay out in full. But for new life insurance policies, are prices about to rise and will they cover Ebola?

“What we need to be concerned about is if the virus begins to mutate so that transmission occurs more easily. Current thinking is that mutation is unlikely, but this could change.

“If it did I’d expect insurers to either apply an exclusion for Ebola deaths for new policies taken out or increase premiums. I would expect insurers are already reviewing the position on a regular basis and expect them to react if circumstances change.”

“Life insurance premiums are currently at historically low levels but with margins so small for insurers, any increase in mortality experience would likely lead to an immediate rate rise as it did with HIV/AIDS about a decade ago. But at the moment I think this is unlikely.”

Michael Ward has worked in the life insurance industry for 30 years.

This was posted in Bdaily's Members' News section by PayingTooMuch .