Industry Insights from our Southeast Healthcare Center of Excellence
At the start of 2020, the healthcare landscape was defined by rising M&A, shifting payment models, expanding regulatory scrutiny and the substantial financial and operational demands of digital transformation. The insurance industry was grappling with rising premium rates, reduced capacity and increasingly limited coverage. The converged impact of these trends on our healthcare industry clients has only been intensified by a global pandemic that has influenced every facet of society.
In 2021, insurance carriers, already uneasy about the potential for systemic loss within healthcare, are wary about the possible impact of COVID-19 on their combined ratios. Therefore, since the start of the pandemic, insurers have reduced their appetite for risk in terms of both coverage and capacity, with a few carriers electing to withdraw from some healthcare segments (e.g., senior care) or from the medical malpractice market altogether. A spectrum of COVID-19 coverage stances has emerged, highlighting the fluidity of emerging underwriting guidelines as insurers seek to respond to the pandemic simultaneous with the heavy spring renewal season.
To navigate this confluence of events, the hard market and the worldwide healthcare crisis requires combined expertise in both insurance and healthcare.
This report highlights significant healthcare market events and what we can expect moving forward.
