Revealed: The four sectors at the forefront of the specialty insurance market

Healthcare, mortgage banking, catastrophe products and non-profit protection are the sectors at the forefront of the specialty insurance market, according to a new report from Aon Programs, a division of Aon Affinity that gives agents and brokers access to more than 300 specialty insurance programs.

“There is an intense craving for customization and for partners who truly know what they’re doing,” said Chad Levine, executive vice president and chief strategy officer at Aon Affinity. “For agents, being able to zero in on a specific client risk and provide coverage for it is a serious leg up. In fact, consumers no longer hope you have what they want – they expect it. Specialization is driving every facet of our lives – including what coverage we choose to protect our most important investments.”

The new report, Specialty Catalysts – What’s Driving One of Insurance’s Hottest Growth Areas, explores the current state of the specialty insurance market, its outlook, and four industries driving its growth. Industries spotlighted by the report include:

• Healthcare: According to Aon Programs, four drivers are impacting the healthcare sector’s need for more customized insurance programs: evolution in the delivery of care, home healthcare, senior living and mental wellness
• Mortgage banking: Demand for specialty coverage in this space is being driven by the highly active homebuying season, the refinance surge and the need for mortgage impairments
• Catastrophe: As severe weather and flooding become more common, commercial property owners are coming to realize their true flood risk and the need for flood insurance, the report said
• Non-profit: The COVID-19 pandemic exposed non-profits to new risks. Growing liability and the need for customized insurance programs in this space give agents the opportunity to be counselors and offer tailored products that help organizations on a budget, Aon Programs said

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“There is – and will continue to be – a significant appetite for specialty products,” Levine said. “The last year certainly showed how important it is to be able to rely on experience – and there are very few programs that have the reach and scope that Aon Programs has. Having access to a network and experience like our team does is integral to a broker’s success. This, coupled with our service levels, sales and underwriting, benefits all parties – is a win-win for everyone involved.”