Major US Health Insurers Face Earnings Pressure Amid ACA Subsidy Uncertainty

The health insurance sector is facing significant challenges as medical costs remain elevated post-pandemic, causing some insurers to lower their yearly guidance due to cost pressures, particularly within Obamacare and Medicaid plans. Insurers are also preparing for the potential expiration of enhanced Affordable Care Act subsidies at year-end, which could result in millions losing coverage if Congress does not act. Meanwhile, UK insurers report growing risks from third parties, including security breaches and financial losses, with many firms struggling due to poor-quality data and inadequate risk management tools. Investment in risk management is increasing, but there remains a gap between preparedness and the complexity of modern threats. Additionally, reports highlight a concerning trend of businesses purchasing less insurance amid rising risks from extreme weather and liability, potentially making ill-informed decisions about coverage limits. Experts urge better risk assessment and data-driven decisions to navigate these evolving challenges effectively.