What I have learned (so far): Navigating COVID-19 as Swiss Re's Head of L&H Underwriting R&D

After 20 years in Claims and Underwriting leadership roles across the globe, the last 2 years navigating COVID-19 may have taught me more than the last two decades combined. As we enter year 3 of the pandemic, I wanted to share a few personal takeaways through the lens of an underwriter.

I'm not the first one to call out the fact that the pandemic, in many ways, has accelerated inevitable advancements that our industry has been slow to adopt, including automating more of the processes surrounding life insurance policies as face-to-face engagements became difficult.

While COVID-19 has acted as a catalyst, many of the changes undertaken by Swiss Re and the industry will likely become standard business processes going forward. The biggest challenge now is to bring the same level of speed and creativity to our work without the strictest limits or immediate pressures of the early pandemic.

One question that the industry, and the rest of society, were forced to grapple with starting in late 2020, when the first shots against COVID-19 were distributed, was how to address vaccination status. Traditionally, L&H underwriting has never asked about vaccine status, whether it be the flu or hepatitis. In the United States, for instance, the Insurance Compact adopted by many states does not permit forms asking questions about applicants' COVID-19 status. 

But for the first time, many insurers were considering COVID-19 vaccination status and, depending on their location, some indeed required this information for those seeking coverage. While arguments for and against using vaccine status in underwriting and pricing can be compelling, the issue has clearly emerged as a deeply personal one for many people and answers are certainly not straight forward. 

Research compiled by the Swiss Re Institute has concluded, however, that vaccination remains a critical tool in helping protect people against severe disease and death, and that vaccines have played an enormous role in averting tragedy and managing the pandemic's course.

An increasing number of people will also suffer from long-COVID as infection numbers continue to climb. One challenge for insurers has been that we are learning 'on the job' as we continue to operate within the pandemic. While we don’t yet know who is more likely to suffer from long-term consequences and why, we are constantly adding to our understanding. For example:

• Vaccination may reduce incidence of long-COVID, the UK Health Security Agency has said. We also know that population vaccination rates in many countries where disability insurance is common are high – more than 75 % –  which could help reduce the number of people who ultimately need such DI benefits.
• COVID-19, we have learned, affects many organs in the body beyond the respiratory system. The  potential for long-term organ damage will be important to monitor as we adapt our mortality and morbidity expectations, now and in the future.

Two years on from the start of the pandemic, we are continuing to learn about COVID-19 and its impacts. Underwriters will closely monitor data on long-COVID, analyse it, and incorporate it into our decision making, to make certain that we can help people better understand their risks and to ensure the products we provide are sustainable.

As the pandemic unfolded in early 2020, I was impressed how the industry reacted quickly, showing unity and partnership to ensure it could continue to offer insurance coverage even in an uncertain environment. 

During the early days of the pandemic, re/insurers around the world had to think about their exposures in ways they never had previously – and make some difficult decisions almost overnight. As data emerged, we were able to adapt quickly. Risk management approaches such as reducing capacity and adjusting underwriting guidance on older ages and co-morbid factors became standard practice.

By being forced to review long-standing methods, we were presented with the opportunity to evaluate what’s fit for the future. 

Despite these challenging times, however, there was an overwhelming spirit in the industry to ensure we continued to provide insurance access to as many lives as possible. We worked with clients to land on solutions to continue writing business in a sustainable manner now. It was critical that the industry provide protection and protect our collective balance sheets, to ensure our long-term ability to make the world more resilient.

Our approach to underwriting has remained relatively consistent with COVID-19. A 'new' virus or disease, however, also demands that underwriters act quickly, to be able to leverage dynamic data that during the pandemic came in in real time. While much of the potential COVID-19 risk comes from in-force business, the current pandemic is a reminder that underwriting expertise and opinion (along with that of our medical and pricing teams) are paramount in protecting growing portfolios against anti-selective behaviour. 

On a personal note, leading through my core values of caring and connection has provided a strong anchor to move forward in what at times felt like rough seas. The past 2 years have been an incredible learning curve, not only for me, but for the industry – and it is a curve that continues, as we see resurgent infections in places including Europe and Asia, even as many nations lift restrictions.

As we all hope for the rough seas to soon pass, I'm certain that the things I have learned along the way will not be forgotten.