More than sniffles

SoA estimates a severe flu pandemic would, worst case, kill 1.9 million people and cost health insurers $38.0 billion in net claims, or about 50% of industry capital.

The report seems to dismiss this quickly, with a rough estimate that capital would drop to between 250 percent and 375 percent of the minimum capital required by the RBC calculation. But I wonder how many companies could withstand the challenge to their liquidity.

Details, including a spreadsheet to model your own pandemic, are here.


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