Group insurance pricing is forward-looking. This means that when premiums are reviewed annually, the premium rates are based on the expected costs of claims over the next 12 months.
The influx of life cover claims over the last two years – and the high uncertainty around the future impact of Covid-19 – requires a cautious approach in terms of insurance pricing.
Life insurance companies are prompted to adjust and accommodate the current environment, resulting in higher premium rates than expected.
