After the 1918 Flu Pandemic...Annuities Did Fine
The Annuity Man
Allison Bell once again offers her great insight into how annuities fared during the last flu pandemic of 1918.
Her fascinating article can be found at ThinkAdvisor. Below is an excerpt from her research.
"One possible clue about how the U.S. annuity market could look in 20 years is that life insurers created the modern U.S. annuity market in the decade in the decade after the catastrophic 1918 influenza pandemic. People with an interest in the topic can see how newspapers of the era covered the topic by searching through electronic newspaper archives, such as the Newpapers.com archive. The consumers and life insurers in the U.S. insurance market in late 1918 had just gotten through World War I, faced the prospect of the country having to pay off mountains of war bonds, in were in the middle of the flu pandemic, which would kill about 600,000 Americans over three years, or 0.6% of the U.S. population, and would be especially hard on pregnant women and working-age men. The 1918 death toll was to the 1918 U.S. population about what a death toll of 1.8 million would be to the current U.S. population. Each community set its own quarantine rules. The quarantines tended to be similar to, but shorter than, the lockdown rules being imposed today."
Allison continues to dig down and provides 5 bullet points of specific research that can be easily compared to today's Coronavirus epidemic. My kudos to Allison for continuing to provide timely and unique takes on today's financial chaos and how history always provides an interesting road map.