Today’s News: Health Insurance Prices Skyrocket, Auto Insurance Costs Increase and 2010 Life Insurance Outlook Stable

A new report has found that health insurance costs have recently skyrocketed for individual buyers while auto insurance costs have also increased significantly. Also, Moody’s reports that the outlook for life insurance looks stable for the rest of 2010.

Health Insurance Prices Skyrocket

Health insurance costs have recently increased by an average of 20 percent for individual buyers, says a report released on Monday by the nonprofit group, Kaiser Family Foundation. Currently, the average annual deductible alone for an individual plan customer is $2,438 – four times the average deductible of a person under an employer plan.

According to the report, about 14 million Americans under the age of 65 buy their own individual health plans instead of purchasing them through employers. Of this number, only 16 percent have decided to switch insurers (CNN Money).

Auto Insurance; Cost of Owning a Car Increase

A new study conducted by AAA reveals that the cost of owning and operating a vehicle coupled with the cost auto insurance has increased. To date, the two costs combined have increased by 4.8 percent to $8,487 per year.

The reasons for the total cost of owning a car having increased include the rising cost of auto insurance, fuel and maintenance. The average cost of auto insurance alone for a sedan is around $1,031. The study focused primarily on top-selling 2009 model year vehicles sold in America (U.S. Chronicle).

Life Insurance Operating Income Outlook Stable for 2010

Ever since the financial crisis in 2008, the life insurance industry has been trying to recover.

According to Moody’s, the industry is definitely taking a step in the right direction, moving from a negative outlook to a stable one. The rating agency tracked 19 U.S. life insurance companies for its report and determined that almost all of the companies posted positive operative earnings and net income during the first quarter of 2010. In total, the net income of the group was $9 billion over first quarter of 2009 (Insurance Networking).