US Commercial Insurers in 2019 will Fare. How?

Analysts at Moody’s investor services have predicted that the insurance services in the USA will be stable for the next 12 to 18 months. In spite of various problems in 2017, earning will be good in the financial year of 2018-2019. The analysts have also said positively about the commercial prices. Properties rates are higher due to 2017 problems, but it may go down in 2019.

Moody’s analysts have also predicted that GDP for the USA will reach 2.9% in 2018 and would decline to 2.3% in 2019. Further, the GDP will reduce to 2% in the coming years. Moody has also said that the economy will grow due to growth in insurance and commercial lines premium.

Moody has also expected that investors may reduce their investment due to the losses they faced during the past years due to the failure of market interest rates. Moody has also predicted that revenue through hospitals has also slowed down and has been reduced to 1.6% in2017. Hospitals are unable to generate revenue due to low reimbursement rate and high expense growth.

Another reason for the problem of USA economy is the growth of population in the country. One more reason is the rise in the cost of technology used in the hospitals. Another reason for the reduction in GDP is falling of the oil prices, which may reduce energy-related investment. In 2014-2015, it has fallen up to 4.4%. Non-defense aircraft orders were downgraded up to 21% while defense aircraft went down up to 59.3%. The orders related to core capital goods also went down. Therefore, the GDP remained at 3.4% in 2017.