Which factor is currently more influential in insurance pricing?

The correct answer is morbidity rates because they play a crucial role in determining the cost of health insurance and the pricing of life insurance products. Morbidity rates refer to the incidence and prevalence of disease and the associated costs of healthcare. As healthcare costs rise and the aging population increases, understanding morbidity helps insurers calculate the risk they are assuming and set premiums accordingly.

Health insurance, in particular, relies heavily on morbidity data to estimate the likelihood of future claims and the costs associated with those claims. If morbidity rates rise due to an increase in chronic illnesses or new health trends, insurers must adjust their pricing models to remain financially viable.

Claims from natural disasters, while significant, typically relate more to property and casualty insurance rather than life or health insurance. Mortality rates are indeed important in life insurance pricing but are often considered in conjunction with morbidity rates to provide a holistic view of risk. Claims from accidents can affect specific types of insurance but do not have the overarching influence on pricing like morbidity rates do in the context of health and life insurance.