The Zacks Accident and Health Insurance industry is likely to benefit from prudent underwriting and increase in underwriting exposure. Aflac (AFL), Unum Group (UNM), Amerisafe (AMSF), and Employers Holdings (EIG) should continue benefitting from prudent underwriting standards, though rise in claims frequency could weigh on the positives.
The industry has been witnessing soft pricing over the past several quarters. Nonetheless, rise in claims due to the pandemic is likely to increase pricing for this industry in the coming days. Also, increasing adoption of technology in operations will help in smooth functioning of the industry amid coronavirus-induced challenges.
About the Industry
The Zacks Accident and Health Insurance industry comprises companies that provide workers’ compensation insurance, largely to employers operating in hazardous industries, such as construction, trucking, logging and lumber plus manufacturing and agriculture. These companies also offer group, individual or voluntary supplemental insurance products.
Workers’ compensation is a form of accident