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Best’s Special Report: Impairments in US Life/Health Insurance Industry Dwindle to Zero in 2022

No new insurance company impairments in the U.S. life/health industry were identified in 2022, which reflected a decline from 10 in 2019, according to a new AM Best report.

The Best’s Special Report, titled, “2022 US Life/Health Impairments Update,” states that during the 2000-2022 study period, 182 life/health insurers became impaired. These impairments consisted of 146 insolvent liquidations, 34 rehabilitations (of which 19 were closed during the period and 15 remain open as of this report) and two conservation actions.

Accident and health insurers and health writers accounted for 69% of the impairments, while 14% were small life insurers that focused primarily on selling lower-value industrial/burial policies or stipulated premium business in the South.

The leading cause for impairment - where a specific cause could be identified – was the significant challenges of operating as a qualified nonprofit health insurance issuer (known as Co-Ops, or Consumer Operated and Oriented Plans) under the Patient Protection and Affordable Care Act, with 19 impairments. Fraud or alleged fraud was the cause of 15 impairments, while eight were caused at least in part by significant investment losses.

To access a copy of this report, please visit

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


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