Underwriting Insurance During a Pandemic
At the time of publication, the COVID-19 pandemic has reached 215 countries and territories, infected 7.9 million people and climbing, and has caused nearly 437,000 deaths, according to numbers from the Centers for Disease
Control and Prevention.

In Canada, the infection and mortality rates vary significantly by province and territory. Having
witnessed the devastation of COVID-19 in China and Europe, and closer to home in the U.S., our provincial and territorial governments were quick to declare states of emergency and mandate the closure of non-essential businesses. With the collective action taken to physically isolate, alongside other key public health guidelines, Canada has so far been able to avoid the
same consequences, and we are contemplating how to safely lift restrictions, even as the number of infections in South America, South Asia, and similar areas continue to rise.

To date, COVID-19 has lower mortality rates than earlier pandemics like SARS and MERS, however it is still too early to tell what the final impact will be.  In underwriting, COVID-19 first hit the radar when advisors began expressing concern about meeting in person with clients who had just returned from China.  There was an urgency to facilitate physical distancing and keep advisors and their clients safe. International travel quickly became a concern, with the expectation that travellers be back in Canada for at least 14 days before they could be considered for insurance coverage.

As we were seeing how this was severely impacting some other countries, it wasn’t long before provinces and territories implemented physical isolation, and suspension of paramedical services quickly followed. It was no longer safe to have medical health professionals visit clients’ homes to secure medical information and collect the vitals and blood and urine specimens needed for underwriting purposes.

Medical exams have traditionally been used to help accurately assess risk, yet, within weeks, most insurance carriers had increased coverage amounts for life, critical illness, and disability insurance products no longer requiring medical exams.  Physical distancing also ramped up the introduction and acceptance of digital signatures, e-contracts, and the use of video chat to verify client identification.  These digital offerings are likely to remain embedded in the insurance landscape.

For life and living benefits insurance products, there is the additional mortality and morbidity risk posed by COVID-19 infection. These risks are especially present for those over age 60 who have pre-existing conditions like diabetes, cardiovascular disease, chronic respiratory disorders, hypertension, and cancer. Insurance companies have had to limit their risk exposure in these situations. Some applicants in this group will need to wait until the pandemic recedes before insurance coverage maybe considered.

Those who have recovered from severe COVID-19 infection also need to be underwritten with care. The onset of increasing dyspnea, or shortness of breath, is usually the main symptom of severe disease, and some of the complications arising are acute respiratory failure, and heart, liver, and kidney injury. The patient may also have heart arrhythmias, and clot formation and stroke are increasingly being observed. Prognosis depends on the severity of the infection and the immune response of the individual. Also emerging is a possible link between COVID-19 and the onset of an illness in children that is similar to Kawasaki disease, a hyper-inflammatory syndrome that can be fatal.

For insurance purposes, hospital reports with results of all testing, extent of recovery, and any complications will be needed to consider an application for insurance coverage. Many applications can be submitted one to three months post recovery; however, if the individual needed to be ventilated during the acute stage, longer wait times will be necessary.

Aside from the health risks associated with COVID-19, physical isolation, job loss, insecurity, and fear contribute to an increased risk of depression and anxiety. We must find ways to stay connected and take care of our mental health while the pandemic lasts. Those of us who already live with depression and anxiety may find it particularly difficult to cope at this time, so this needs to be taken into consideration during the underwriting process.

Financial health has also been affected by the pandemic, as shutting down the economy has certainly had global impacts as well. Financial advisors who predominantly sell insurance coverage have struggled with the inability to secure insurance medicals due to physically distancing, and the resulting limited amounts of coverage on offer. Those in the high-net-worth market have had to wait patiently for these services to resume so that they can attend to their clients’ insurance needs.

As the provinces are just beginning to reopen for business, attention is now turning to resuming paramedical services, with an eye to doing so responsibly and safely. There has been a real collegial attitude among the many carriers in in Canada, who share a unified interest in ensuring consumers, health professionals, and the community at large are not at undue exposure to risk of contracting COVID-19 when they have insurance medical exams completed.

Over the past few years, insurance companies have been innovating and finding new ways to assess risk aside from the traditional forms of medical evidence that we secure today. Insurers are deploying predictive analytics and artificial intelligence to simplify underwriting and reduce the burden of securing blood and urine specimens and vitals.
This will continue to be an important part of the landscape in future. In anticipation of a possible second wave or future pandemics, insurers are scoping out ways clients can collect their specimens in their own homes and use video chat to obtain or provide medical information.

As with many aspects of our lives, like more people working from home and the need to continue to physically distance until a hoped-for vaccine is distributed to the population, this pandemic will change how we do business going forward. The insurance industry is no exception.

Written by Carol Neuss, Assistant VP and Chief Underwriter New Business, Individual Customer for The Canada Life Assurance Company

Underwriting Insurance During a Pandemic
At the time of publication, the COVID-19 pandemic has reached 215 countries and territories, infected 7.9 million people and climbing, and has caused nearly 437,000 deaths, according to numbers from the Centers for Disease
Control and Prevention.

In Canada, the infection and mortality rates vary significantly by province and territory. Having
witnessed the devastation of COVID-19 in China and Europe, and closer to home in the U.S., our provincial and territorial governments were quick to declare states of emergency and mandate the closure of non-essential businesses. With the collective action taken to physically isolate, alongside other key public health guidelines, Canada has so far been able to avoid the
same consequences, and we are contemplating how to safely lift restrictions, even as the number of infections in South America, South Asia, and similar areas continue to rise.

To date, COVID-19 has lower mortality rates than earlier pandemics like SARS and MERS, however it is still too early to tell what the final impact will be.  In underwriting, COVID-19 first hit the radar when advisors began expressing concern about meeting in person with clients who had just returned from China.  There was an urgency to facilitate physical distancing and keep advisors and their clients safe. International travel quickly became a concern, with the expectation that travellers be back in Canada for at least 14 days before they could be considered for insurance coverage.

As we were seeing how this was severely impacting some other countries, it wasn’t long before provinces and territories implemented physical isolation, and suspension of paramedical services quickly followed. It was no longer safe to have medical health professionals visit clients’ homes to secure medical information and collect the vitals and blood and urine specimens needed for underwriting purposes.

Medical exams have traditionally been used to help accurately assess risk, yet, within weeks, most insurance carriers had increased coverage amounts for life, critical illness, and disability insurance products no longer requiring medical exams.  Physical distancing also ramped up the introduction and acceptance of digital signatures, e-contracts, and the use of video chat to verify client identification.  These digital offerings are likely to remain embedded in the insurance landscape.

For life and living benefits insurance products, there is the additional mortality and morbidity risk posed by COVID-19 infection. These risks are especially present for those over age 60 who have pre-existing conditions like diabetes, cardiovascular disease, chronic respiratory disorders, hypertension, and cancer. Insurance companies have had to limit their risk exposure in these situations. Some applicants in this group will need to wait until the pandemic recedes before insurance coverage maybe considered.

Those who have recovered from severe COVID-19 infection also need to be underwritten with care. The onset of increasing dyspnea, or shortness of breath, is usually the main symptom of severe disease, and some of the complications arising are acute respiratory failure, and heart, liver, and kidney injury. The patient may also have heart arrhythmias, and clot formation and stroke are increasingly being observed. Prognosis depends on the severity of the infection and the immune response of the individual. Also emerging is a possible link between COVID-19 and the onset of an illness in children that is similar to Kawasaki disease, a hyper-inflammatory syndrome that can be fatal.

For insurance purposes, hospital reports with results of all testing, extent of recovery, and any complications will be needed to consider an application for insurance coverage. Many applications can be submitted one to three months post recovery; however, if the individual needed to be ventilated during the acute stage, longer wait times will be necessary.

Aside from the health risks associated with COVID-19, physical isolation, job loss, insecurity, and fear contribute to an increased risk of depression and anxiety. We must find ways to stay connected and take care of our mental health while the pandemic lasts. Those of us who already live with depression and anxiety may find it particularly difficult to cope at this time, so this needs to be taken into consideration during the underwriting process.

Financial health has also been affected by the pandemic, as shutting down the economy has certainly had global impacts as well. Financial advisors who predominantly sell insurance coverage have struggled with the inability to secure insurance medicals due to physically distancing, and the resulting limited amounts of coverage on offer. Those in the high-net-worth market have had to wait patiently for these services to resume so that they can attend to their clients’ insurance needs.

As the provinces are just beginning to reopen for business, attention is now turning to resuming paramedical services, with an eye to doing so responsibly and safely. There has been a real collegial attitude among the many carriers in in Canada, who share a unified interest in ensuring consumers, health professionals, and the community at large are not at undue exposure to risk of contracting COVID-19 when they have insurance medical exams completed.

Over the past few years, insurance companies have been innovating and finding new ways to assess risk aside from the traditional forms of medical evidence that we secure today. Insurers are deploying predictive analytics and artificial intelligence to simplify underwriting and reduce the burden of securing blood and urine specimens and vitals.
This will continue to be an important part of the landscape in future. In anticipation of a possible second wave or future pandemics, insurers are scoping out ways clients can collect their specimens in their own homes and use video chat to obtain or provide medical information.

As with many aspects of our lives, like more people working from home and the need to continue to physically distance until a hoped-for vaccine is distributed to the population, this pandemic will change how we do business going forward. The insurance industry is no exception.

Written by Carol Neuss, Assistant VP and Chief Underwriter New Business, Individual Customer for The Canada Life Assurance Company