In the five years to 2015, a consistent increase in healthcare expenditures (i.e. medical cost inflation) forced industry operators in the Health and Welfare Funds industry to consistently raise premiums and increase reserves to ensure healthcare liabilities are properly funded. This occurrence, combined with a relatively weak and volatile stock market, also took its toll on industry profit margins. Looking ahead, while revenue is expected to increase over the five years to 2020, increasing competition from insurance carriers will temper growth.
This industry comprises legal entities (i.e. funds, plans and programs) that provide medical, surgical, hospital, vacation, training, and other health and welfare related employee benefits, exclusively for the sponsor’s employees or members. Unlike private insurers, health and welfare funds operate on a nonprofit basis, for the benefit of members and their sponsors, not shareholders.
The report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecast, growth rates and an analysis of the industry key players and their market shares.