Robert Morris University Effects of COVID 19 Virus on Insurance Companies Discussion Since this is a group project, once you have posted your initial post,

Robert Morris University Effects of COVID 19 Virus on Insurance Companies Discussion Since this is a group project, once you have posted your initial post, please your class members posts and choose three to reply to and discuss what you have learned from their report and any insights you also have regarding their discussion. For example: What are your thoughts? Do you agree or disagree? What else can you add to your classmates post that perhaps he/she did not discuss at this time? APA is NOT required for your replies and they can be based on your opinion and assumptions, but please write 150-200 words for each of your thee replies so the discussion is robust as if we were actually working in groups in our class. Also, if someone replies to your thread, you do not have to reply back unless you would like to. This assignment only requires you to write an initial post and three reply posts to three different classmates.

1-The Possible Effects of COVID-19 Virus on Insurance Companies

I study actuarial science, which could be summarized as insurance mathematics. A life insurance actuary, for the most part, is concerned about predicting the timing of future events such as the death of a policyholder and making sure the company will have enough reserve to be able to fulfill its contractual obligations.

As I am writing this paper, Johns Hopkins University’s Coronavirus Resource Center puts the number of COVID-19 deaths to 6,898 people in New York state alone (Johns Hopkins University & Medicine, 2020). For a life insurance company who has a significant portion of its business written in the state of New York, these times will undoubtedly test their various mortality models. As an example, close to 36% of life insurance policies in New York state were underwritten by MetLife alone in 2018 (Lalley, 2019), which is very significant.

Insurance companies will not only feel the squeeze from paying out untimely death benefits, but can also expect class action lawsuits against cruise liners and nursing homes whose claimants will argue that the institutions have failed to properly protect their health or the health and safety of their loved ones.

Undoubtedly, not everyone who has perished so far had life insurance, sadly, some might not even have had health insurance. Additionally, not everyone who was in fact insured had their policies underwritten by MetLife, I am only using them as an example to illustrate the dangers of risk concentrated geographically. Nevertheless, I believe that this pandemic will have insurance companies re-evaluate their exposures to risk. They might revise their underwriting policies as it concerns people with certain pre-existing conditions or obesity, which proved to be a significant determinant of hospitalization during this pandemic.

As a cumulative effect of the virus, I think it will make insurance companies more conservative in their mortality predictions, push premiums higher, and as a result, insurance will be affordable to even less people than it is now.

2-COVID-19 has affected our lives in one way or another. You have to be at home and travel conditions can be annoying as the planes canceled most flights for foreign students who want to return to their home countries.

Airlins must act and make quick choices to keep pace with the advancement and spread of the Crown infection around the world, as well as cynical desires of the misfortunes that these companies can cause this year. The German carrier gather, Lufthansa, declared that its flights to China will proceed until April 24th, a number of weeks back, as it were the discuss transport segment in China was threatened by the Crown infection, but inside many days and with the far reaching spread of the infection, all this has become The segment around the world is beneath danger of confronting a emergency that’s at slightest the largest in a decade. In this setting, the Lufthansa Gather, for case, declared a 40 percent diminishment within the number of its flights to Italy. Since all things are interconnected and have a mutual affect on the discuss transport division, the number of brief and medium trips can diminish by around 25 percent within the coming weeks. In Germany.

3-An organization I know quite a bit about is my dad’s business, May’s Music Shoppe, which is located in Butler. It is just a small shop where he sells musical instruments as well as accessories and sheet music. He also rents out studios to teachers to teach specific instruments to students. The business is a sole proprietorship, so he is the only employee. His shop has been affected by COVID-19 greatly, as it is considered a non-essential business, so he had to shut down for the foreseeable future. This is pretty bad in the short term, as my dad doesn’t bring home a lot of money from the business since it is aimed at such a niche market in such a small area. In the long term this could really hurt the business. Losing out on revenue for an unknown amount of months could potentially put him out of business. He is already in an industry that is declining sharply; a global pandemic could make the industry all but disappear because people will be focused on other things. I predict that he will attempt to scale back his business and move to a smaller location where he would possibly be paying less rent, but would also likely lose out on revenue from rent for studios. Ultimately, I think the pandemic will affect most small businesses negatively, not just my dad’s. Anything completely unforeseen like this is impossible to prepare for and there is really no guarantee of small businesses surviving a crisis.