Becker's Healthcare November 16, 2020
Health insurers can expect several factors, like interest rates, regulation and possible transformation of government healthcare, to negatively affect their credit in the long term, according to a new report from credit ratings agency Fitch Ratings.
For its report, Fitch analysts widened their usual three- to five-year outlook to predict what the coming decades hold for health insurer operations.
Here are five factors that will affect credit ratings:
Negative
1. Low interest rates will force health insurers to rely even more on underwriting profits as their investment yields decrease. Insurers that have documented strong pricing and risk assessment will be the most successful, according to Fitch.
2. Regulators will likely take a closer look at health insurers’ excess profits...