Seen at National Underwriter:
The statement [to the NAIC] by Tom Edwalds, a representative of the Society of Actuaries, Schaumburg, Ill., and Munich American Reassurance Co., Atlanta, was based on pandemic risk model.
While $64 billion in net claims would hurt insurers, the “unpleasant and uncomfortable” tab would be well within the capital ability of the industry, according to Mr. Edwalds.
He said the $64 billion total estimated under a severe scenario includes $34 billion in individual life net claims and $30 billion in group life net claims, according to the SOA report.[...]
Before folks breathe too big a sigh of relief, the article notes that the study excludes the effect of such a pandemic on the P&C industry’s workers comp market, potentially amounting to $400 billion.