The recession and staggering job market have hurt enrollment in group health employee benefit plans and with the future of health care reform yet to take clear shape, is expected to continue the pain into 2011, a new study suggests.

Those factors will continue the erosion of health insurer’s growth and profitability, according to the study from Conning Research and Consulting.

Conning is projecting statutory net operating gains to decrease from its high in 2007 of $26.9 billion. The research group is projecting the statutory net operating gains to fall to $21 billion this year and remain at that level through 2011.

“Conning projects that health care costs will increase faster than health insurance premiums resulting in deteriorating margins through 2011,” said Terence Martin, an analyst at Conning Research & Consulting. “Health insurer premium growth will be pressured by falling employment, marketplace competition and customer resistance to premium increases.”

Ongoing economic, market and political pressures will continue to besiege the industry, according to Stephan Christiansen, director of research at Conning.

“In addition to the recessionary impacts on the industry,” Christiansen said, “there is great uncertainty surrounding health reform initiatives and their potential impact on insurers. However, health insurance companies weathered the recent economic conditions relatively well, and individual health and disability products could rise in importance depending on the direction of health care reform.”