Covid-19 Impact on the South African Life Insurance Industry: What Can we Learn?

Link: https://www.soa.org/sections/international/international-newsletter/2022/july/isn-2022-07-hoberg/

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Excerpt:

The impact of Covid-19 in South Africa in terms of excess deaths was substantial, when considering the reported excess deaths as published by the South African Medical Research Council (SAMRC).[4] Please note that in this article we will not further consider whether all excess deaths can be directly attributed to Covid-19, however, as per the article “Correlation of Excess Natural Deaths with Other Measures of the Covid-19 Pandemic in South Africa,”[5] it is estimated that 85 percent to 95 percent of excess natural deaths are attributable to Covid-19.

Based on the SAMRC excess deaths, taking the expected plus excess deaths as Actual and expected natural deaths as per their methodology as Expected, we observe an Actual versus Expected (AvE) ratio of 116 percent in 2020, a ratio of 131 percent in 2021, and a ratio of 113 percent in 2022 up to May 1. When we look at the AvE for each wave, we can see that the 2nd wave (predominantly Beta variant) and the 3rd wave (predominantly Delta variant), had the most severe impact on the general population (see figure 2 and figure 3)

Author(s): Idelia Hoberg

Publication Date: July 2022

Publication Site: SOA International News