Moody's: Insurers will be financially 'unscathed' by COVID-19 but must adapt to industry evolution
A new analysis from Moody's examines potential long-term effects of COVID-19 on insurers. (Getty/utah778)
While insurers are set to weather COVID-19's financial storm, an inability to keep up with how the pandemic is changing healthcare will be credit-negative in the long term, according to a new report from Moody's Investors Service.
The coronavirus pandemic has put a spotlight on chronic conditions, the need for continued investment in telehealth and virtual care and the drive toward value-based care, according to the report.
Health plans that are able to adapt to these changing trends are far better positioned for long-term success, Moody's said.
"The ability or inability of our rated health insurers to adapt to these changes in the next three to five years will be an important driver of credit strength," the analysts said. "Health insurers that successfully adapt will boost their credit strength through lower medical cost trends than their peers."