Emerging Risks: Healthcare Reform


Reforms imposed by the new federal healthcare reform law are driving changes in the healthcare industry, and the surplus lines industry is feeling the impact.


“The things we’re seeing in this space are it’s spurring on M&A activity, it’s spurring on consolidation.”


David Bresnahan, Lexington Insurance Company


To help drive costs out of the healthcare system, as the new healthcare law dictates, smaller groups of healthcare providers are consolidating to gain buying power and achieve better efficiencies. The growth in healthcare investment, as well as mergers and acquisitions, creates the need for more complex coverages and opportunities for surplus lines writers to provide them.


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