Insurance Industry Faces Challenges from Diabetes and Obesity
The US healthcare system is facing significant challenges due to the rise of diabetes and obesity, placing a burden on insurers and the entire industry. Recent episodes of BestDay Audio, a daily wrap-up of insurance news, have highlighted various topics affecting the US insurance market. A. M. Best's statistical study showed that US property/casualty insurers reported a combined ratio of 91.9, improved from 100.1 in the previous year, and the lowest combined ratio since 1953.
Key Takeaways:
- Diabetes and obesity are taking a toll on the US healthcare system, impacting insurers and the industry as a whole.
- US property/casualty insurers reported a combined ratio of 91.9, a significant improvement from the previous year.
- The National Association of Insurance Commissioners' Interstate Insurance Product Regulation Commission is planning to implement its interstate compact group in 2007.
- The industry is becoming increasingly concerned about climate change and its potential impact on insurance.
- Florida's newly elected chief financial officer, Alex Sink, is facing the challenge of reforming the state's last-resort insurer, Citizens Property Insurance Corp.
- Consumer advocate Birny Birnbaum and industry representatives are discussing the impact of climate change and global warming on the insurance industry.
Statistics:
- Combined ratio for US property/casualty insurers: 91.9 (as of December 2006)
- Lowest combined ratio since: 1953
- Combined ratio in 2005: 100.1
- Citizens Property Insurance Corp. policyholders: increasing due to limited availability and affordability in the private market
- Number of participants at the National Association of Insurance Commissioners Winter meeting in San Antonio: unknown
Sources:
- A. M. Best Company, Inc.
- National Association of Insurance Commissioners (NAIC)
- National Association of Mutual Insurance Companies (NAMILC)
- American Insurance Association (AIA)