After collectively losing between $6.9 billion and $8.4 billion on the Affordable Care Act’s exchanges in 2016, insurers are adapting to the health care law’s challenges. But hurdles to individual market profitability remain, according to a Moody’s report issued Tuesday.

After sustaining initial losses in the market’s early years, many of Moody’s rated companies have de-emphasized or exited their ACA business, according to the report. Companies remaining in the individual market have adapted by adjusting their geographic range, raising premiums and narrowing their provider networks. Moody’s analysts expect a modest improvement in the segment’s 2017 results, “although risks remain.”

“The insurance industry is getting its arms around this and we should see less losses going forward,” Moody’s senior analyst Dean Ungar told BenefitsPRO. “While it’s been very hard to quantify that, the adjustments the insurers made will result in much less drag on their earnings.”