From Nasdaq: 2025-06-13 13:33:00

The Zacks Accident and Health Insurance industry is poised for growth with increased underwriting exposure. Companies like AFL, UNM, TRUP, GL, and AMSF are expected to benefit from prudent underwriting standards. However, higher inflation and rising medical costs could pose challenges. Soft pricing trends are expected to persist, but a rise in claims of lower severity and increased technology adoption will help the industry function smoothly. The industry has been profitable, but Fitch Ratings predicts a softer performance in 2025. The industry comprises companies providing workers’ compensation insurance, with a positive outlook for the future.

Three trends shaping the industry’s future include continued pricing pressure, improved claims frequency, and increased adoption of technology. Pricing pressure is driven by inflation, rising medical costs, and demographic changes. Claims frequency is expected to improve due to safety measures and better working conditions. The industry is also witnessing an accelerated adoption of technology, including AI, data analytics, and automation.

The Zacks Industry Rank indicates bright prospects for the Accident and Health Insurance industry, with a ranking in the top 39%. The industry has outperformed its sector and the S&P 500, with a collective stock gain of 29.6% in a year. The industry is currently trading at a P/B ratio of 1.84X, with positive performance and valuation metrics. Companies like TRUP, AFL, UNM, GL, and AMSF are in focus for their growth potential and positive outlook in the industry.

Trupanion, a pet insurer, is well-positioned for growth in the underpenetrated pet insurance market. Aflac offers voluntary supplemental health and life insurance products with a focus on digital solutions. Unum Group provides various insurance products with a focus on sales growth and favorable risk results. Globe Life offers individual life and supplemental health insurance, with growth expected in the future. AMERISAFE specializes in workers’ compensation insurance, benefiting from niche focus and strong claims management. These companies have positive outlooks and growth potential in the industry.



Read more at Nasdaq: 5 Accident & Health Insurance Stocks to Watch as Exposure Increases