"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.