The Global Pandemics Affects Future Insurance Coverage

If there is one thing the global pandemic highlighted, it is that adequate health and life insurance coverage cannot be over-stated.  Insurance work by pooling risk.  When we have an event that breaks the risk management model, involving massive payouts to the majority of the people insured, it affects the model for risk management for those entering the risk pool later.  In effect, the entry barriers are higher.  This can be seen in longer waiting periods, to higher premiums for coverage, to limitations in coverage. 

We are not going to see the last of these kinds of pandemics.  They may not be global, but there is a high chance of regional outbreaks.  And when we have gotten some measure of control over Covid19, there are entire families of viruses that we are still vulnerable to.  As such, health insurance is both a priority on a personal, and a national policy level.