Insurers were busy trying to stay ahead of the curve when it comes to creating products for the top markets in 2014, and they don’t seem to be slowing down this year either. Read on to find out what some believe will be the top markets of 2015 and why.

HEALTHCARE

The healthcare industry has undergone monumental changes and consolidation in recent years, and insurers have scrambled to tailor their products to the new risks and exposures that have emerged as a result. 2014 was a busy year for insurers as they reorganized their healthcare liability divisions and developed coverages for the new healthcare landscape. Don’t expect 2015 to be any different.

“The market is moving from very conventional, silo products, to more of an integrated risk profile and it’s important that we have not just products but solutions that respond to that,” said Matt Dolan, president of IronHealth in Simsbury, Conn.

In April, IronHealth enhanced its Healthcare Professional Liability (HPL) insurance product with increased limits of $50 million and a broader scope of coverage. The coverage also now includes individual limits for affiliated physicians.

Some of the other market newsmakers in 2014 included:

  • Freedom Specialty, a division of Scottsdale Insurance Co., partnered with Cooper Gay Swett & Crawford Group’s Pro-Paxis on a new specialized excess healthcare professional liability program. According to the company, this excess product complements the primary liability products offered by the Scottsdale family and expands its abilities to address the capacity needs of a consolidating hospital/health system sector.
  • Berkshire Hathaway Specialty Insurance (BHSI) launched a healthcare umbrella policy targeted toward the exposures of large medical providers. The policy features include a contractual liability coverage section that specifically addresses accountable care organizations, as well as a definition of insured that encompasses new entities acquired or created by the named insured.
  • Ryan Specialty Group (RSG) formed a new healthcare and life and sciences underwriting facility with underwriters at Lloyd’s of London called RSGUM Healthcare. Target healthcare classes include: long-term care; allied healthcare; specialty and rehabilitation hospitals; and standalone extended reported period products.
  • RLI launched a new healthcare liability unit in October that targets integrated hospital systems, long-term care facilities, outpatient care facilities and clinical research providers.

Consolidation will continue in 2015 as well, which Bill McDonough, CEO of Midwest medical professional liability carrier MMIC, predicted last year will actually increase business opportunities for agents.

“There will be more care provided by physicians assistants and nurse practitioners, for example, and agents haven’t typically been very active in that market so that’s an opportunity for them,” he said. “Agents and brokers either focus on hospitals or physicians — they are not looking at both. But they need to look at this as a dynamic market … there are a lot more opportunities than they realize.”

Check back Thursday, Jan. 22 for Part Two of the "Top Markets to Watch in 2015" series