Published on 19 Apr 2024 on Zacks via Yahoo Finance
5 Stocks From the Prospering Accident & Health Insurance Industry
The Zacks Accident and Health Insurance industry is expected to ride on the increase in underwriting exposure. Aflac AFL, Unum Group UNM, Employers Holdings EIG, AMERISAFE AMSF and Trupanion TRUP should continue to benefit from prudent underwriting standards. However, a rise in claims frequency could weigh on the positives.The industry has been witnessing soft pricing over the past several quarters, which is not expected to change any time soon. Nonetheless, a rise in claims, with business activities returning to normal levels, is likely to favor pricing. Also, the increasing adoption of technology in operations will help the industry to function smoothly.
About the Industry
The Zacks Accident and Health Insurance industry comprises companies providing workers’ compensation insurance, mainly to employers operating in hazardous industries. These companies offer group, individual or voluntary supplemental insurance products. Workers' compensation is a form of accident insurance paid by employers without affecting employees’ pay. Claims are generally met by insurers or state-run workers’ compensation fund, benefiting both employers and employees. While it boosts employees’ morale and, in turn, productivity, employers stand to benefit from lower claim costs. As awareness about the benefits of having such coverage rises, the future of these insurers seems bright. Per Precision Reports, the global worker's compensation insurance market is expected to grow considerably between 2024 and 2032.