Did the 1918–19 Influenza Pandemic Kill the U.S. Life Insurance Industry?

39 Pages Posted: 26 Sep 2020 Last revised: 4 Apr 2023

See all articles by Gustavo Cortes

Gustavo Cortes

Warrington College of Business, University of Florida

Gertjan Verdickt

KU Leuven, Department Accounting, Finance and Insurance

Date Written: April 1, 2023

Abstract

No. Using a novel, hand-collected dataset of U.S. life insurance companies during the Influenza Pandemic of 1918–19, we show that high-exposure insurers charged higher prices on new policies vis-à-vis less exposed firms. Although the pandemic surprisingly increased mortality rates among younger adults, it also increased the awareness of the importance of life insurance. This increase in demand, coupled with efficient risk management through higher policy prices, prevented further bankruptcies. The pandemic, while devastating for public health, was not particularly severe to the life insurance industry.

Keywords: Spanish Flu Pandemic, 1918–19 Influenza, Life insurance firms, COVID-19

JEL Classification: N11, N12, N21, N22, N81, N82, G22, G52

Suggested Citation

Cortes, Gustavo and Verdickt, Gertjan, Did the 1918–19 Influenza Pandemic Kill the U.S. Life Insurance Industry? (April 1, 2023). Available at SSRN: https://ssrn.com/abstract=3697832 or http://dx.doi.org/10.2139/ssrn.3697832

Gustavo Cortes

Warrington College of Business, University of Florida ( email )

P.O. Box 117168
Gainesville, FL 32611
United States

HOME PAGE: http://warrington.ufl.edu/directory/person/9136/

Gertjan Verdickt (Contact Author)

KU Leuven, Department Accounting, Finance and Insurance ( email )

Naamsestraat 69
Leuven, B-3000
Belgium

HOME PAGE: http://www.verdickt.eu

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