Great company Assurant is resigning insurance on health insurance market due to lower revenues. The health insurance division of the company, Assurant Health, is for sale. Whether a buyer is found, Assurant intends to leave the company health insurance in 2016.
Assurant resigning on health insurance 
reason to call it quits in the health insurance market is financially driven. According to press release from the company Assurant Health is estimated to lose between $ 0 million and $ 80 million first quarter of this year. In 2014, Assurant Health lost $ 64 million in total. Assurant, which posted $ 10.4 billion as a company last year, is best known for her home and life insurance.
According to reports by Modern Healthcare , the reasons for the financial losses are rooted in the Affordable Care Act.
society attracted sicker than the average person and was hit by a higher than allowed medical loss ratio in 2014 and also attributed the losses on insurance risk of weak programs recovery of the ACA and the policy change that allowed people to remain in the plans that are not compliant ACA.
Will other Health Insurance Companies Follow Suit?
A natural question is, will other health insurance companies follow? It remains to be seen. With Assurant, however, there may have been written on the wall. The announcement last year that Assurant was to cut commissions health insurance agents in 2015 was a great sign that the company acted aggressively to reduce overhead.
secondly, Assurant Health entered in the trade of the ACA in 16 states in 2015 , a sign that financial assessment of the market was positive.
Although it is impossible to predict the fate of insurance companies in the new ACA landscape, they are - as employers - which aims to understand how to profit in the new regulatory environment.
Conclusion
For better or for worse, the Affordable Care Act is having a significant impact on the industry health insurance in the United States. Just as individuals and employers, health insurers are playing "Russian roulette" new regulatory environment.
Do Assurant Health bet wrong? What do you think of Assurant announced to exit the market for health insurance? Leave a comment below.
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