FEATURE / HEALTHCARE
According to Rosgen, the fallout is both good and bad. While there may be less business out there, he says, the accounts and opportunities are larger than ever before – and when an agent wins a deal these days, it tends to be a big one. “[The new law] has created a lot of opportunities for different types of organizations to set up shop and flourish because of the way the Act is trying to foster … more [proactivity], so you’re seeing a lot more integrated-type services and a lot more emphasis on creating things before they become big problems,” he says. “Things change and you have to figure out how to adapt in order to take advantage of the possibilities that exist out there. Healthcare’s nothing if it’s not constantly changing.” Sam Friedman, who leads the research team at Deloitte’s Center for Financial Services, has found that many outstanding agencies produce a substantial part of their business from group health insurance sales, with many producing close to half of their revenue in this category. Given that health insurance is a category in which many people are novices, he says, agents may be able to position themselves as experts. “You’re going to have millions of people who are entering the health-insurance market for the first
“The opportunity for hacking has gone up enormously, and physicians and facilities alike face growing liabilities” Sam Friedman, head of Deloitte’s Center for Financial Services
time – and they may turn to independent agents to be their guides,” he says.
WHAT PRODUCTS ARE NEEDED? When discussing insurance products for the healthcare industry, the first phrase that pops up tends to be malpractice coverage. The American Academy of Actuaries outlines the types of malpractice coverage available: • Occurrence policies, which are considered the broadest type of coverage – as well as the riskiest for the insurer and the most expensive for the policyholder. These policies provide coverage for insured events that occur during the policy period. They are often not offered because of the risk that claims may be reported years after the policy expires. • Claims-made policies cover insured events that occur on or after the specified policy’s retroactive date – so long as those events are reported during the policy period. Such coverage can vary between carriers depending on how a particular claim is defined. • Modified occurrence policies are a hybrid of the two. This type of coverage is provided on a claims-made basis with an extended reporting period, which is usually in force for a limited time after the expiration of the previous policy. Rosgen notes that while some of the traditional malpractice agents may be seeing fewer opportunities, there are more in other areas, especially outpatient work: “Imaging centers, home health, hospice care providers, adult daycare, all the ancillary things that go with and around nursinghome health and health care…there is significant growth in this area.” He advises brokers and agents to take a total riskmanagement approach, which takes into consideration all of the various risk exposures that are applicable to today’s changing environment, both within and beyond the healthcare industry. “The short answer is that it depends because the
52 | SEPTEMBER/OCTOBER 2014
22/08/2014 11:51:29 PM
The magazine for America’s insurance broking and advice community.