Risk Management in Deadly Times
The U.S. Life Insurance Industry in the 1918–9 Influenza Pandemic
Bibliographic Data
| ID | 8852002 |
|---|---|
| Authors | Gustavo Cortés (0000-0002-8158-4399, University of Florida), Gustavo S Cortes (Warrington College of Business University of Florida), Gertjan Verdickt (0000-0002-7912-5169, Department of Accounting and Finance University of Auckland, corresponding author) |
| Year | 2024 |
| Volume | 78 |
| Issue | 4 |
| Pages | 1202-1230 |
| Publication date | 2024-10-14 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic History Review (JOURNAL) |
| Journal identifiers | ISSN: 0013-0117 • E-ISSN: 1468-0289 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/ehr.13389 |
| OpenAlex | W4403401842 |
| Language | EN |
| References cited | 33 |
Using a novel, hand‐collected dataset of U.S. life insurance companies during the influenza pandemic of 1918–9, we show that high‐exposure life insurers charged higher prices on new policies vis‐à‐vis less exposed firms. Although the disease surprisingly increased the mortality rates among younger adults, it also increased awareness of the importance of life insurance. We argue that price increases were a crucial risk management tool. Coupled with a surge in demand and coverage, it prevented further financial distress. Although devastating for public health, the influenza pandemic was not too severe for the life insurance industry
Actuarial science · Business · Coronavirus disease 2019 (COVID-19 · Infectious disease (medical specialty · Influenza pandemic · Insurance industry · Life insurance · Pandemic · Risk management · Agricultural risk and resilience · Finance · Insurance and Financial Risk Management · Insurance, Mortality, Demography, Risk Management · Internal Medicine · Medicine
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| Citation velocity | historical |
|---|---|
| Highly cited | No |