HARTFORD, Conn., July 9 /PRNewswire/ -- The ongoing recession and associated job cuts is creating a decrease in enrollment in group health employee benefit plans, slowing health insurer growth and pressuring profitability, according to a new study by Conning Research and Consulting.
"Conning projects that health care costs will increase faster than health insurance premiums resulting in deteriorating margins through 2011," said Terence Martin, analyst at Conning Research & Consulting. "Health insurer premium growth will be pressured by falling employment, marketplace competition and customer resistance to premium increases. While we project premiums to grow modestly, we project statutory net operating gain to drop from the 2007 high of $26.9 billion to $21 billion this year and hover near that level through 2011."
The Conning Research report, "Health Insurance Forecast & Analysis" provides a three-year forecast of the health insurance industry and its key lines of business -- Managed Care, Individual Accident & Health, and Group Accident & Health.
"The health insurance industry faces a variety of scenarios due to economic, market and political variables," said Stephan Christiansen, director of research at Conning. "In addition to the recessionary impacts on the industry, there is great uncertainty surrounding health reform initiatives and their potential impact on insurers. However, health insurance companies weathered the recent economic conditions relatively well, and individual health and disability products could rise in importance depending on the direction of health care reform."
"Health Insurance Forecast & Analysis" is available for purchase from Conning Research & Consulting by calling (888) 707-1177 or by visiting the company's web site at www.conningresearch.com.
About Conning Research & Consulting
Conning Research & Consulting provides insurance industry analysis to insurers and industry stakeholders. Its published research includes market coverage of 30 segments of the industry in addition to industry forecasting and identification and analysis of major strategic issues. As a result of its wealth of experience and intimate knowledge of the insurance industry, Conning understands industry challenges and opportunities and provides in-depth analyses on a wide range of industry products and issues. The Conning name has represented excellence in independent insurance industry research for 50 years. Conning Research & Consulting is a division of Conning, a provider of asset management and insurance industry research and consulting services to insurers. Conning is headquartered in Hartford, CT.
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|SOURCE Conning Research and Consulting|
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