Best’s Special Report: US Life/Health Insurance Industry Sees Impairments Halved in 2024

March 11, 2026 at 09:30 AM EDT

Five insurance company impairments were identified in the U.S. life/health industry for 2024, following 10 in 2023, according to a new AM Best report.

The Best’s Special Report, titled, “2024 US Life/Health Impairments Update,” states that during the 2000-2024 study period, 198 life/health insurers became impaired. These impairments consisted of 160 insolvent liquidations, 36 rehabilitations (of which 21 were closed during the period and 15 remain open as of this report) and two conservation actions.

According to the report, impairments in the past two years have been related to troubled affiliates. Three of the five 2024 impairments included a Connecticut-domiciled life insurer and its two captive reinsurance subsidiaries that were placed in rehabilitation after experiencing adverse mortality in the universal life business, which contributed to significant volatility in claims and the deteriorating financial condition. This followed six affiliated health companies that became impaired in 2023.

Other takeaways in this report include:

During the 2000-2024 study period, accident and health insurers and health writers accounted for 69% of the 198 total impairments, while 13% were small life insurers that focused primarily on selling lower-value industrial/burial policies or stipulated premium business in the South. Remaining impairments involved fraternal entities, annuity writers and other life or combined life/annuity/health business.
The leading cause for impairments in 2000-2024 - 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 13 companies failed after experiencing rapid growth.
Of the 198 impairments during the 24-year period, 107 were health insurers; 94 conducted business in one state, while another eight wrote in two to five states. Eighty-four impairments were life and health insurers; 40 were engaged primarily in the sale of life products, 27 of which wrote business in a single state. The remaining seven impairments were small fraternal insurers.

To access a copy of this report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=363134.

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 www.ambest.com.