Amwins, a global distributor specializing in insurance products and services, released on November 8 a healthcare-focused State of the Market report. The report offers insights into current market trends, their impact on capacity and pricing and the specific challenges faced by different classes within the healthcare industry.
The Amwins Healthcare State of the Market Report delves into the multitude of factors influencing the healthcare marketplace. It includes detailed insights across critical segments, such as long-term care and senior living facilities, hospitals and non-emergency medical transport (NEMT).
“Current developments are keeping the trajectory of the healthcare insurance market in flux, and our market expertise helps our clients navigate through a continually evolving landscape,” said Philip Chester, executive vice president and national healthcare practice leader at Amwins. “In an ever-transforming healthcare industry, our commitment remains unwavering – to furnish our clients with robust, high-quality data and intelligence, empowering them with indispensable knowledge essential for their success.”
Long-term care and senior living facilities are currently grappling with rising labor costs, staffing shortages and an increase in professional liability claims. Hospitals, meanwhile, are still dealing with the aftermath of the COVID-19 pandemic, with fiscal challenges, rising labor costs and reduced relief funding. On the plus side, there is an influx of new carriers entering the medical malpractice space. Additionally, consolidation within the healthcare industry is ongoing, with rural hospitals affiliating with larger systems and private equity investments on the rise. During Q3:23, there were 240 healthcare acquisitions made by private equity firms and/or their portfolio companies, an approximately 15% increase from Q3:22 when 209 such deals were announced, according to data captured in the LevinPro HC database.
The NEMT space is facing challenges with limited specialty auto coverage. The cost of vehicle repairs has surged, and carriers are being more selective about the risks they accept. The report also emphasizes the impact of the economy on the market, such as the closure of small healthcare entities and the growth of alternative care options, including therapy clinics, standalone emergency rooms and urgent care centers.
To read the full report, visit: Amwins State of The Market Report 2023: A Focus on Healthcare
