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August 11, 2004 at 08:00 PM
Health Insurers Premium Increases Averaged 10% In 2003
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Accident and health insurers saw increases in premiums narrowly outpacing incurred claims in all but one category, according to 2003 data from National Underwriter Insurance Data Services.
For the top 300 companies, as measured by accident and health lines of business, premiums earned less dividends averaged a 10.1% increase while claims incurred increased 8.1% for an average positive spread of 1.92%.
Premium increases broke out as follows: 2 with increases of over 1,000%; 9 over 100%; 10, between 50-100%; 32 between 25-50%; 70 between 10-25%; 86 between 0-10%; 77 with declines of up to 25%; and, 12 with declines of 25-100%. Two companies went from negative to positive showings in 2003 over 2002.
In general, incurred claims grew as follows: 3 posted 1,000%+ increases; 8, 100%+ increases; 18, 50%+ increases; 20, 25%+ increases; 70, over 10% increase; and, 78, companies had increases of between 0-10%. Declines in incurred claims were also posted by 83 companies that saw claims drop by up to 25%. A total of 17 companies had a decline in incurred claims of 25-100%, and 3 companies had declines of 100% or more.
In the group health category, premiums less dividends grew an average 9% while incurred claims increased 8% in the same 2003 over 2002 time frame, for a positive 1% spread.
The top 300 companies as measured by guaranteed renewable premium had an average year-over-year increase in 2003 of 14% and an increase of 14% for claims incurred resulting in no net change.
Eight companies experienced 1,000%+ increases in guaranteed renewable premiums earned in 2003 compared with 2002.
