Musings of a @RetirementQuant

Covid-19, Longevity Risk & the Economics of Annuitization

Although the dire medical situation and mounting economic toll of covid-19 is of immediate and first-order importance, the virus has also prompted many to ponder their own mortality. Whether it’s doctors in emergency rooms who quickly redrafted codicils or nursing home attendants pondering their own DNR instructions, the randomness or mortality is being imprinted on our susceptible behavioral minds. Interestingly, preliminary and anecdotal evidence suggests a spike in the acquisition of life insurance policies over the last few months, perhaps…

Insurance Lessons from the Spanish Flu

Slightly over a century ago, in January 1918, doctors at a military camp in Haskell County, Kansas, USA, were puzzled by cases of local soldiers with severe flu symptoms. In the most extreme cases the signs of severe illness included hemorrhaging (i.e. massive bleeding) from the nose, ears and stomach. A painful and rapid death followed the symptoms with a very high probability, with the official cause of death being pneumonia or massive hemorrhaging itself. At first – what much…