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Risk Management in Deadly Times

The U.S. Life Insurance Industry in the 1918–9 Influenza Pandemic

Bibliographic Data

ID8852002
AuthorsGustavo 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)
Year2024
Volume78
Issue4
Pages1202-1230
Publication date2024-10-14
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Economic History Review (JOURNAL)
Journal identifiersISSN: 0013-0117 • E-ISSN: 1468-0289
PublisherWiley (PUBLISHER • GB)
DOI10.1111/ehr.13389
OpenAlexW4403401842
LanguageEN
References cited33

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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