A recent report from Willis Towers Watson indicates that commercial lines insurance rates are firming in the majority of business lines for 2019, and market access to some niches may be getting tougher. Factors behind the increase in rates are as result of escalating losses in the casualty insurance market and the need for tighter underwriting on the heels of significant catastrophic losses.
One of the niche market facing such challenges is allied health care, which includes long-term care, home health care, hospice, and senior living facilities, where pricing has continued to harden due in part to a rise in frequency and severity of claims, according to the Willis Towers Watson report. In fact, several states are seeing significant rate increases, including California, Illinois and Florida. Renewals for 2019 nationwide are expected to increase 5% to 30%.
In addition, carriers are scrutinizing this sector with several key markets having exited the space in the past 12 months due to poor underwriting performance while other insurers are not offering occurrence-based forms, and retentions (deductible or self-insured retentions) are on the rise in efforts to improve profitability. Most recently, several Lloyd’s syndicates also withdrew from the marketplace completely.
The report also cites several emerging risks for the long-term care and senior living market. These include the potential rise in class-action lawsuits that focus on anti-consumer, staffing, marketing and ADA violations; expanded litigation beyond urban areas affecting results in suburban and exurban venues more dramatically; and natural disasters, including wildfires, catastrophic storms and flooding, drawing underwriter attention to disaster preparedness.
What’s critical as renewals come up for 2019 is for insurance agents and brokers to work with carriers that specialize in the allied health care, long-term care, home health care, hospice and senior care market. Program administrators and insurers with a long history of experience and expertise in properly underwriting and pricing this niche and offering risk management solutions to help stem losses are committed to weathering the ups and downs of insurance market conditions. They offer continuity and stability for both agents and brokers looking to place business and insureds who need to be properly protected.
With 40+plus years of experience, our exclusive focus at Manchester Specialty Programs is in protecting the home health care and hospice industry, providing agents and brokers with the ability to offer clients a total insurance program that includes: Professional Liability, Workers Compensation, General Liability/Package, Non-Owned/Hired Auto, D&O, EPLI, Regulatory Audit Coverage and Cyber Liability. We also represent a select group of some of the most highly rated and strongest carriers in the U.S. market for home health care, hospice and other long-term care sectors. For more information about how we can help you protect your insureds, please contact us at 855.972.9399.