2019 MAY 01 (NewsRx) -- By a
A recent decision by the
The rule clarification likely will have a greater impact on insurers with more of a focus on larger accounts. Although the business loss ratio trend has been favorable, a large number of people who previously might have been declined coverage now may be included in the larger pool of guaranteed-issue policies, which could drive up insurers’ loss ratios over the near term. However, insurers also would have a larger population to spread the risk. In addition, insurers focusing on national companies with employees in numerous states will face a more-complex environment as it relates to compliance with Paid Family Leave laws.
Most adults in the
Given the potential for more covered lives, insurers may increase their marketing efforts to make employers and employees more aware of the need for long-term disability insurance. Overall, AM Best believes automatic enrollment could have a favorable impact on insurers, as well as the general population, by offering better income protection.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=284731. AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information. Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on businesswire.com: https://www.businesswire.com/news/home/20190417005886/en/
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