The insurance regulator will conduct a study on the impact of the COVID-19 pandemic on mortality trends and life insurers' claims experience.
The 2022 Philippine Intercompany Mortality (PICM) study will be conducted by the Actuarial Division of the Insurance Commission (IC) and the Actuarial Society of the Philippines, the insurance regulator said in a circular dated 29 December 2022 posted on its website.
All life insurance companies, with life insurance policies issued on or before 31 December 2020 are to participate in the 2022 PICM study. The deadline for the submission of data is on 3 February.
The study aims to examine the industry’s mortality experience compared to the 2017 PICM Table and the impact of COVID-19. The study will not result in an updated mortality table, the IC said.
“The analysis of the mortality claims experience, as significantly affected by the pandemic, is imperative in analyzing its impact on pricing adequacy and the industry’s financial stability,” it added.
The regulator said that the study will be conducted using policy count and will only cover direct, standard risk, and individual business. It will cover experience from policy anniversaries in 2014 to 2021 and track experience by policy duration. The data shall include all direct business on basic standard individual ordinary (whole life, endowment, term) and variable life policies issued on or before 31 December 2021 but have not been terminated in any manner before policy anniversaries in 20'14.
“The study aims to analyze the experience under various study parameters, such as age, gender, product type, distribution channel, and underwriting basis,” the IC said.
“The IC will conduct an initial review of the data submission on a company level and may ask the company representative questions or clarifications related to the submission. The companies are requested to keep all files used and generated (input and output) and data certification reports for at least three years,” the regulator added.
Source: asiainsurancereview.com