Insurance Brokers Find Opportunity in ACA
The private exchange business could widen Aon's and Marsh's moats.
The Stock Strategist article published Jan. 2 provided an overview of the Affordable Care Act. In this Stock Strategist, we examine the ACA's effect on two insurance brokers we cover, Aon and Marsh & McLennan.
The Affordable Care Act aims to broaden coverage for 30 million uninsured and low-income families through the use of state-operated health-care exchanges. Likewise, private-sector employers are starting to offer health-care benefits to employees through exchanges operated by Aon (AON) and Mercer (a subsidiary of Marsh & McLennan (MMC)). The 2015 enrollment results have been less than stellar so far, casting doubts of the future growth of the private exchanges and their ultimate contributions to Aon's and Mercer's financials.
Vincent Lui does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.