Insurance Companies Alarmed by Surge in Deaths Among Young People in Post COVID-19 Pandemic World

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Insurance Companies Alarmed by Surge in Deaths Among Young People in Post COVID-19 Pandemic World

November 23rd, 2023

Awake Goy

Executives at the largest insurance companies in the United States are alarmed that teenagers, young and white-collar Americans in the prime of life are inexplicably dying at a record pace, causing a “monumental outflow” of death claims and drag on profits that is shaking the industry and causing some to take a fresh look at the problem.

According to an Oct. 26 report in InsuranceNewsNet, U.S. insurance companies expected higher-than-normal payouts from excess deaths during the COVID-19 pandemic.

Insurers saw death benefits rise 15.4% in 2020, the biggest one-year increase since the 1918 Spanish flu epidemic, followed by a record $100.28 billion — nearly double the historic norm — in total death benefits paid out by the industry in 2021.

“The numbers were naturally forecasted to climb during the pandemic, but some industry and health authorities are concerned the rates haven’t greatly diminished as COVID infection rates have declined,” InsuranceNewsNet reported.

According to InsuranceNewsNet, insurers are especially concerned by data from the Centers for Disease Control and Prevention (CDC) that show “mortality rates alarmingly rising for different categories,” including younger adult mortality rates that are up more than 20% above historic norms in 2023.

The CDC numbers reported in August show the death rate for Americans ages 15-45 rose 20-24% above normal in 2020, and soared in 2021, to a nearly 30% death increase for 15-year-olds and a more than 45% increase for 45-year-olds.

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