Enigma Intel Inc.
January 4, 2022
Enigma Intel Inc.
4 January 2022
“[W]hat we saw just in third quarter, we’re seeing it continue into fourth quarter, is that death rates are up 40% over what they were pre-pandemic,” Davidson explained. He said the deaths were “huge, huge numbers,” and not in the elderly or infirm, but “primarily working-age people 18 to 64.” Most of the filed deaths claims are NOT Covid deaths, Davison said.
A 40% jump in all-cause deaths is a problem for a lot of reasons, but for a life insurance company, it could be devastating. Actuarially, working-age people are supposed to be dying in very SMALL numbers. Instead, what the insurance companies are seeing is comparable to four “black swan” disasters AT THE SAME TIME.
“Just to give you an idea of how bad that is, a three-sigma or a one-in-200-year catastrophe would be a 10% increase over pre-pandemic,” Davidson explained. “So 40% is just unheard of.” In other words, it’s never ever happened before — mortality rates in younger people comparable to four simultaneous two-hundred-year catastrophes.
