COVID-19 Mortality Impact in Asia: Assessing Risks and Modelling Impact for the Insurance Industry

As the world transitions from the COVID-19 pandemic to living with it as endemic, it is important to recognise that the mortality impact from the pandemic bears significant ramifications for insurers, policymakers, and a wide spectrum of stakeholders.

Together with our academic partner, Nanyang Technological University, Global Asia Insurance Partnership (GAIP) developed its first Living Lab report that examines the mortality impact from the pandemic in East and Southeast Asia.

In conjunction with the release of the report, a technical workshop was held on 17 August 2023 to present the findings and recommendations from the study, share the models used in the study, and demonstrate how the tools developed from the study could be used by the insurance sector. More than 30 participants from various insurance firms and regulators in the region participated in the workshop.

Dr Jessica Dang, Research Assistant Professor at Nanyang Technological University and author of the study led the workshop. Dr Dang explained the stochastic mortality model adopted for modelling the mortality impact from the pandemic, and demonstrated how modelling tools developed from the study could be utilized to assess the mortality risk exposure of life insurance portfolios due to the pandemic.

Nicole Tan, a Senior Health Insurance consultant from Willis Towers Watson, remarked “I found the statistical models and data analysis techniques to analyse the mortality impact of Covid-19 particularly interesting. I look forward to leveraging the modelling tools from the study in the course of my work.”

“I am thrilled to have had the opportunity to host the workshop and discuss my research with industry practitioners. The dialogue that took place during the workshop helped me understand practitioners’ points of view related to mortality risk management, which is invaluable in shaping the direction of our future work. I hope the workshop has demonstrated to our industry partners what we, as academics, can contribute to the industry and opens doors for potential future collaborations,” said Dr Dang.

The COVID-19 pandemic has reaffirmed the indispensable role of the insurance sector in understanding and managing the risks associated with mortality in times of crisis. Practitioners’ ability to analyse date, model scenarios, and provide insights has proven instrumental in informing policy decision, guiding financial strategies, and promoting resilience in the face of uncertainty.