In the five years to 2016, the Health and Medical Insurance industry's revenue is forecast to increase at an average annualized rate of 5.0% to $865.8 billion, including a 4.4% jump in 2012, according to IBISWorld.

While IBISWorld anticipates that medical-cost inflation will be the primary driver of this growth, increased demand for medical insurance coverage is also expected to play a role. At the same time, industry profitability is forecast to remain under pressure, declining from 4.5% in 2011 to 4.0% by 2016 due to tighter government regulations – particularly once healthcare reform takes full effect in 2014.

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