Double Indemnity for Insurers: Pandemic Flu and Earthquake in Mexico

Double Indemnity is defined as an accidental death benefit that is equal to the face amount of a life insurance policy’s basic death benefit and is paid when the insured’s death is the result of an accident as defined in the policy.

With current news about the potential for pandemic flu and a 5.6 magnitude earthquake hitting southern Mexico, one could certainly be reminded of how uncorrelated events can sometimes happen at the same time. Now that stress-testing is being done for the banks, it is clear that the job of insurers is to make certain that they are prepared as best as possible for dual events that can cause financial stress...

Seeking Alpha: Double Indemnity for Insurers: Pandemic Flu and Earthquake in Mexico