A.M. Best Co. has issued a briefing that provides a revision on its initial outlook for the United States Health Insurance sector in 2012, raising it from being negative to being stable. Last year at this time, A.M. Best had confirmed its negative forecast for that sector, primarily over worries about the capability of that sector of the insurance industry to be able to put into place and maintain the various requirements for the Patient Protection and Affordable Care Act (PPACA), in addition to concerns over the chance that there…
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Towers Watson report shows the cost of claims continues to outpace the rise in insurance pricing
Towers Watson, a global professional services firm, has released a new report showing the rising prices in the commercial insurance industry. The report shows that commercial insurance prices have grown for the second consecutive year by an average of 2%. Property insurance and workers compensation are the two fields where the increases in pricing are most apparent. The property insurance market is being bolstered by a number of natural disasters that occurred throughout the year, which prompted insurers to raise rates and prices for new policies. While prices are rising,…
Read MoreHHS upholds medical loss ratio provision, changes some aspects of the overarching law
Despite daunting opposition, the Department of Health and Human Services has remained firm on the medical loss ratio provision of the Affordable Care Act. The medical loss ratio provision requires that insurers pay no less than 80% of premium money on improving medical care. The provision has gained rabid opposition from the nation’s health insurance companies, who have been fighting to have administrative expenses and independent insurance broker fees removed from the mandate. The HHS, however, has issued a final ruling on the matter, claiming that most of the nation’s…
Read MoreFitch Ratings publishes its 2012 outlook report for American insurance brokers
Fitch Ratings has just announced the results of the analysis of their data for revenue and earnings increases for American insurance brokers in 2012, and that they have shown that their figures will likely equal or top those that were reported from January through September 2011. However, they also indicated that the basic nature of competition of the marketplace for property & casualty insurance, and the lukewarm recovery of the global economy will continue to provide a struggle for more significant growth and operating performance. Top-line increases may be able…
Read MoreFederal report shows that most insurers can meet the medical loss ratio requirement
The medical loss ratio provision of the Affordable Care Act, which requires insurers to spend at least 80% of the money they collect from premiums on improving medical care, is a source of constant controversy throughout the country. Insurers have claimed that the rule cripples their ability to remain financial solvent in the current economic climate. The Government Accountability Office has released a new report countering the claims from the insurance industry. The report shows that most all insurance companies in the U.S., both large and small, are able to…
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