- Chicago, IL
The healthcare insurance market is facing an unsettled future.
A challenging economic landscape, rising costs and diverging carrier business strategies are increasing uncertainty in the marketplace.
Social inflation continues to be a serious issue for many insurers, while economic inflation — which is already greatly increasing the pressure being applied to insurer profitability — is fast becoming the greatest concern for carriers in this space.
And with so much going on in the market, RPS Healthcare Broker Kyle Pass says that clear communication is key to ensure that risks are thoroughly prepared for renewal.
"Communication needs to be carried out early and often," Pass says. "When looking at a renewal, you really should have everything sorted out 90 to 120 days in advance — that way, we can have proper conversations with the insurer and warn the client of any potential rate increase.
"That means the conversation with the client is much easier because everyone's on the same page — we aren't going to them a week before the renewal date and saying that their premium has increased by $10,000."
Equally important is for agents to work with their insureds to find the right solution for covering their risks. And with the market facing an unsettled and challenging future, RPS Area President James McNitt says that this collaboration is important now more than ever.
"It's definitely a challenging market in which to operate at the moment, but that doesn't mean that the outlook is entirely bleak," McNitt says. "We're still placing risks successfully across all sectors of the Healthcare insurance market, and that's not going to change.
"Here at RPS, we have a strong knowledge base to draw on and take pride in our ability to place any risk despite the challenges facing the market. It's about working with our insureds and with our agents to find the best solution on a case-by-case basis, finding the right insurer to do business with over the long-term for a strong and sustainable partnership to help our customers move forward, safe in the knowledge that their business is properly protected."
Learn more about what's next for the Healthcare industry in the RPS 2023 US Healthcare Market Outlook.