Health Care Market’s Explosive Growth Offers Agents New Professional Liability Opportunities

The world of professional liability can be a foreign place for many agents and brokers alike.

The policies vary from carrier to carrier so no universal form is used as the standard insuring agreement. Terminology such as: claims made, retro date, and extended reporting period can sound like jargon for those who are unfamiliar.

But unfamiliar should not be a road block. Agents and brokers who do not push forward into the unfamiliar and expand into new areas within the insurance industry may find themselves sinking with the soft market and down economy.

The professional liability segment can offer new revenue streams as well as round out and stabilize an agency’s book of business during this soft and challenging marketplace. While many books of business comprised of contractors and manufacturing risks are down, pockets of professional liability such as health care are experiencing explosive growth. For any organization looking to expand its product offering and client services in the professional liability arena, the health care sector should be the place to start.

Health Care Boom

Within the knowledge and service based world of professional services, one of the fastest growing segments is health care. Throughout the economic recession the health care industry has perhaps been one of the best safe harbors for job stability.

As mass layoffs and downsizing occurred across the country spanning many industries, health care weathered the storm far better than most and served as a fresh start for those looking to reinvent themselves. Former auto and other plant environment workers who were victims of countless job cuts went back to school and emerged as x-ray technicians, lab technicians, home health care providers and physical therapist assistants. These are all areas of health care that not only remained stable but grew as the economy suffered. With classes and certification programs that can be completed in as little as nine months, the down time was minimized for this newly educated workforce. The strong demand for employees coupled with the reasonable curriculum made the heath care industry the perfect fit for many people across the country.

The recent migration of workers into the health care sector could not have come at a better time. As the baby boomer demographic continues to age and move into retirement with the “Golden Boomers” beginning this year, the continuing need for health care will be stronger than ever. With a group nearly 78 million strong that uses medical care far more than their parents did, positions within the health care industry will continue to grow and so too will the need for this specialized insurance.

Specific areas in strong demand will be geriatrics, home health care, hospice, assisted living and physical therapy. More people are choosing the comfort of their own home while aging which has given a lift to the home heath care segment. The services rendered by home heath care professionals vary widely from running errands and preparing meals to dispensing medication, drawing blood and operating machines that have a bearing on life.

In addition to a large aging population, the average life expectancy has been on the rise over the past decade. People are living longer due to vast improvements in medicine, technology, nutrition and public health. This equates to an increase in business for plastic surgery centers and physicians for lifestyle lifts and injections; as well as physical therapists for sports related injuries.

Market Opportunities

For agents and brokers who want to safeguard and round out their portfolio or any agency wanting to focus on an area of insurance that is destined for explosive growth for the next 25 years, health care is place to look.

Agents and brokers should not let the unfamiliarity of professional liability and more specifically health care prevent them from seizing this opportunity to grow. Take the time to review and understand the various forms and products available in the marketplace. Align with the right wholesale partners who understand and specialize in this niche area of business. With an estimated four million baby boomers turning 50 years old this year (11,000 birthdays per day), the need for health related services and this specialty insurance will be in high demand for many years to come.

Topics Trends Agencies