Economic realities in the health insurance business, which are tough even in the best of times, have become more severe amidst the current financial crisis. Health insurers were already struggling with low margins and cost pressures from customers, and now face even greater pressure on earnings.
Our recent conversations with rating agencies suggest that both the level of financial scrutiny and the level of sophistication expected around understanding the key drivers of risk will be increasing significantly. This will make it even more difficult for senior executives of health plans to manage their bottomline, capital position, and investment decisions. While no two health plans are the same — and with some marked differences between for-profit insurers (concerned more with earning credit in the capital markets) and their not-for-profit counterparts (concerned more with regulatory pressures) — we have identified consistent themes emerging across the industry.
.pdf/_jcr_content/renditions/cq5dam.thumbnail.319.319.png)
Oliver Wyman Ideas App
