Insurance Stocks Down Since UnitedHealthcare CEO Brian Thompson Killing

Major Insurance Stocks Fall Amid Backlash Against Industry

Major insurance stocks have fallen more than 6% since their closing prices last Tuesday, the day before the deadly shooting of Brian Thompson, CEO of UnitedHealth Group’s insurance arm.

Investors React to Renewed Rhetoric Against Insurers

That includes UnitedHealth, CVS Health, and Cigna, which operate three of the nation’s largest private health insurers. Thompson, 50, led UnitedHealthcare, the largest private payer of health insurance benefits in the U.S.

Criticism of Insurance Industry

Luigi Mangione, 26, is accused of fatally shooting Thompson outside the Hilton hotel in midtown Manhattan early Wednesday last week, as the CEO headed to UnitedHealth Group’s investor day. Investigators have said Mangione was a critic of the health-care industry, a view some Americans sympathized with online in the days after Thompson’s death.

Industry Criticism

The stock performance of the companies appears to be in response to the "renewed rhetoric" condemning insurers’ business models, where they "wind up incredibly profitable at the expense of some patients at different points of the year," Jared Holz, Mizuho’s health-care equity strategist, said in an interview.

Industry Criticism Not New

He noted that it is not a new theme in the industry, which many Americans blame for their spiraling health-care costs.

UnitedHealthcare Faces Criticism

UnitedHealthcare, similar to other big insurers, has faced lawsuits and criticism from regulators, lawmakers and patients alike over allegedly denying claims to maximize their profits. Americans have criticized insurance companies over denied coverage for services or treatments, unexpected bills, hefty out-of-pocket costs and the dizzying complexity of navigating coverage, among other issues.

Backlash Against Industry Will Be Short-Lived

While backlash to the industry has mounted since the shooting, Holz said the negative stock reaction will likely wind up being "fairly short-lived." He added that he does not expect insurance companies to make material changes to their policies in response to the killing.

Conclusion

The shooting of Brian Thompson, CEO of UnitedHealth Group’s insurance arm, has led to a backlash against the insurance industry, with major insurance stocks falling more than 6% in the days following the shooting. The criticism of the industry is not new, with many Americans blaming insurance companies for their spiraling health-care costs. However, it is unlikely that the backlash will lead to significant changes in the industry’s policies.

Frequently Asked Questions

Q: What is the reason for the decline in insurance stocks?
A: The decline in insurance stocks is due to the backlash against the industry following the shooting of Brian Thompson, CEO of UnitedHealth Group’s insurance arm.

Q: Is this criticism of the insurance industry new?
A: No, this criticism is not new. Many Americans have been criticizing insurance companies for their business models, which they believe prioritize profits over patients.

Q: Will the backlash against the industry lead to significant changes in insurance policies?
A: No, it is unlikely that the backlash will lead to significant changes in insurance policies.