Public health specialists and life insurance actuaries are starting to think about what increased exposure to wildfire smoke could do to the odds of insured people becoming disabled or dying.
Plumes of smoke from wildfires in Canada and elsewhere got U.S. policymakers' attention this week by putting 40 million people — in an area of the country that includes the Great Lakes area, New York, Philadelphia and Washington — under a cloud of "purple air," or heavily polluted air.
That pollution spike gave residents on the East Coast a short taste of what residents of California, Oregon and Washington state have often experienced during wildfire outbreaks in recent years.
Historically, insurers have treated wildfires as a concern for issuers of property and casualty insurance, not issuers of life insurance. But, writing three years ago in an article about a big, intense wave of bushfires in Australia, life insurance actuary Rhode Harrington estimated that an intense, weeklong burst of exposure to bushfire smoke could increase the overall death rate by up to about 0.3% and could increase the overall disability rate by up to about 0.1%.
What It Means
Climate change or other factors that increase people's exposure to wildfire smoke could eventually lead to a modest increase in the cost of life insurance and add to uncertainty of retirement planning clients' life expectancy.
PM2.5 Dust
One air quality indicator is the amount of dust in the air. Researchers often track exposure to the fine dust made up of grains that are less than 2.5 millionths of a meter wide, or PM2.5 dust.
