NU Online News Service, Jan. 18, 4:50 p.m. – Fitch Inc., Chicago, has published annual forecast reports for the health, life and long-term care insurance industries.
Analysts at the credit rating agency are giving outlook ratings of stable for health, negative for life and mixed for LTC.
Health insurers and managed care companies should do about as well this year as they did in 2001, because they are continuing to charge sensible prices, pull away from the troubled Medicare health maintenance organization program, and fix problems with past acquisitions, the Fitch health insurance analysts write.
Enforcement of tough new capital requirements should help the stronger players by weeding out the weaker players, the analysts add.
But the analysts warn the health insurance industry still faces uncertainty about changes in product structures and changes in government programs and laws.
Fitch analysts see life insurers continuing to fight the same ferocious competition and distribution upheaval that they have faced for the past three years.