Health and Accident insurance companies are finding themselves facing a hit in their earnings, recently, as a result of investment losses coming from struggles in the shaky European economy.
Banks from Ireland, Portugal, and Greece, have all faced challenges which have led companies such as AFLAC Inc., who have placed a good deal of their investments with them, to experience some notable losses.
AFLAC has announced that it will likely face losses in the second quarter that will reach $610 million as a direct result of these investments. The insurer and other companies in similar circumstances will probably be working in bettering their portfolio qualities, even if doing so will cause them to book European asset losses.
In light of recent financial loss, the industry is seeing an uptick in supplemental health plans popularity and filling the need for many business owners. Due to the recent business trend to offer employees fewer benefits as a result of the uncertain economy, workers have been more inclined to obtain supplemental insurance in order to complete their health coverage.
Another coverage that is allowing insurers to boost their earnings is income protection, as workers continue to maintain their concern over the stability of their employment.
It is the ability of insurance companies to observe the trends and concentrate their efforts on keeping their products appealing and available to people in today’s global economy that will help the health and accident insurers to compensate for the investment and income generation struggles that they are facing as a result of this same issue.