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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 11, 2018 08:48 AM (EST)
AM Best is maintaining a stable market segment outlook for the U.S. health insurance industry in 2019, citing positive earnings supported by strong results in all major lines of business, growth of industry capital and surplus and reduced near-term regulatory uncertainty.
A new Best’s Market Segment Report, titled, “Market Segment Outlook: U.S. Health,” states that positive fundamentals continued in 2018 driven by favorable medical cost trend, stable performance of the commercial group market, profitable growth in government programs and sustained improvement in the commercial individual segment. AM Best expects underwriting results to be strong in 2018, though down slightly compared with 2017, when the industry reported its highest earnings in five years. AM Best has seen carriers price closer to medical cost trends in the current year, especially in the individual lines of business where profitability exceeded projections for many carriers in 2017. Strong earnings also are expected to contribute to further growth of capital and surplus, which similarly to 2017, outpaced premium growth. These favorable trends should continue into 2019.
The market segment report outlines other factors that are driving this outlook, including as follows:
To access the full copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=280743 .
For a video with Doniella Pliss, associate director, about the U.S. health industry outlook, please visit http://www.ambest.com/v.asp?v=healthoutlook1218 .
AM Best is a global rating agency and information provider with a unique focus on the insurance industry.