Some reinsurers and primary insurance companies have announced that they will temporarily stop accepting applications for some life insurance policies. The COVID-19 outbreak has injected a new level of uncertainty into the marketplace and made it difficult for insurers to complete underwriting tasks, such as medical exams. Low interest rates are also having an impact on carriers’ business models.
Additional carriers may be considering similar actions. Producers may want to reach out to clients considering life insurance purchases and also expedite applications to ensure coverage for clients before additional restrictions go into place. NAIFA is actively monitoring the issue and will continue to keep NAIFA members informed of potential developments.