The aging American population will possibly create a remarkable and exceptional demand for the senior care industry to the coming decades and this opens up lucrative opportunities for the brokers and agents to expand their business in this sector. However, as per the insurance experts in the industry, it is critical to understand a get a grip on the changing landscape in the senior living market and long-term care.
The vice president at CNA, Bruce Dmytrow, says from a specialization perspective that knowledge is undoubtedly the best possible tool through which you can achieve success in the market. While conversing with senior care facility and board of directors, knowledge is extremely necessary as you can add value by recognizing the risks, identifying the segments and getting a grasp on the challenges of underwriting. When you’re aware of the current trends, you get more credibility.
A sneak peek into the aging population and the senior care industry
For the senior care industry and the global health care sector, there is a major overhaul waiting. As the payers, providers, stakeholders and governments work hard to deliver efficient, effective and equitable care, they are doing this within an ecosystem which is going through a fundamental and drastic shift in clinical, business and operating models. Senior home care industry is being driven by the growing and aging populations, the emphasised focus on health care, the spur in chronic diseases, enhancing financial regulations and new innovative technologies and treatments.
All of this leads to rising costs and an increase in the level of spending for provision of care, technology innovations and infrastructure improvements. The aging population is increasing at a fast pace all over the world. Life expectancy has also increased from 72.4 years in 2014 to 73.5 years in 2019. This is going to bring the total number of people above the age of 65 to more than 605 million which accounts for 11% of the entire population of the world. The aging population is the ultimate driving factor for a growing business market and reports reveal that this population is increasing with time. Henceforth, senior care and home care businesses will have enough potential in the coming years.
The constant and rapid growth of the senior care industry – Few statistics
As mentioned above, the senior care industry is a rather expanding one. Here are few indicators which are evidence to the fact that this industry will keep growing and the main segment of customers would be the elderly people.
- Presently, in a year, 8,348,100 individuals obtain support from few of the mains in the long term care industry like the nursing homes, home health agencies, hospices, adult day care centers and residential care communities.
- By the time it’s 2050, the total number of people who use paid long term care in any place (whether professional nursing facilities or assisted living or home) will double from 14 million in 2000 to 28 million. Here again, the aging population and their soaring needs of senior home care will drive this hike.
- Among the older population with long-term care in the community, around 40% have long-term care support. Among them, 25% are more than 85 years in age and 75% report that they are presently in moderate to poor health.
- 4 million family caregivers offer assistance to the adults with some kind of chronic illness or disability.
- Among the population which falls into the category of 65 years or older, 70% of them will probably develop different sorts of disabilities before they die and 40% will eventually be admitted in a nursing home.
- 9 million personal caregivers offer care to people who are above 50 years of age and who are suffering from dementia.
A surefire growth in health tourism and senior care industry – Viable reasons
What are the potential reasons behind the havoc growth and encouragement of the health tourism industry? Here are few to take into account:
- Exceptionally hefty treatment costs in the home country and low cost effective treatment provided by the health tourism department
- To be able to leverage the highly efficient equipments and technology offered by the health tourism department
- Too long waiting lists in the country and the chance of getting immediate medical help within a week by the health tourism department
- Seek help of tourism while getting the treatment as the patients will most likely forget about their illness and can unwind in a destination of the health tourism department
- To eliminate the stress and rejuvenate the mind, body and soul by leveraging alternative forms of medicines which haven’t got any side effects
- To leverage better hospitality services offered by health tourism department
- To reap benefits of the services of highly-skilled health professionals
- To make the patients feel as if they’re in their home for the treatment of their serious diseases
What are the challenges that lie ahead of this industry?
As the demand for the services is leading to a burgeoning number of senior care facilities, there are several challenges which the insurance provides need to solve in the current health care industry. For this, the insurance specialists should first know about the industry. They need to get a grip on the litigation state of the geographical locations in which they serve. They also need to know the trends that are prevalent both from a risk perspective and also from the perspective of taking a look at the services that are provided by these facilities.
Not only that, the long-term senior care industry is also witnessing several other challenges as well. They’re coming across more seniors and individuals who nurture a wish to age inside their homes. As this trend looms larger, there is an expansion of the facilities to offer additional services which include home care. Dementia care is one of the most remarkable services that are provided among people who are suffering from dementia.
As more 18+ take care of 50+, there is a reduction in productivity
Due to the fact that there are so many family caregivers who work in offices, caregiving has always had an adverse impact on the entire economy and also on the employers. There are drops in the productivity of the caregiver and due to this, the businesses tend to lose a huge amount every year. The employers also have to pay a hefty amount to cover the caregivers through their workplace health packages. On the contrary, there are other businesses which totally lose their employees to caregiving. The female caregivers are 2.5 times more likely to reside in poverty and there are way more likely to get Supplemental Security Income.
The growth of the senior home care industry – What are the reasons?
The home care industry is witnessing an accelerating growth and the reasons include some of the following:
- Boost in need. There are several millions who are attaining an age where they are in dire need of any type of home care. As there are too many who need this type of care, the industry will definitely respond by accomodating themselves with this soaring demand.
- Instead of taking the sick and elderly people out for their homes for meeting appointments, the home care industry can bring such services to the home. This offers a pre-set route for the suffering people to receive the assistance that they need.
- There are many who realize that senior home care is a rather affordable route for giving people the help that they need. This is even true as compared with things like nursing homes and living facilities.
Impact of the growth on the senior care business
The family caregivers are getting tired in juggling their responsibilities of their workplace along with handling their senior parents who need care. Hence, the senior care industry is expanding itself in a way to be able to fit in with this growing demand. By 2020, there will be an 80% increase in personal care aides, home health facilities to 1.4 million people. As a whole, the senior care industry is growing more than the American job market. Prospects look indeed bright for senior care but the industry will also have to meet other challenges of the soaring industry.
With the invention of powerful and effective new technologies, home health aides and caretakers will offer the best care to the seniors. Conventionally, the industry is slow while bringing about any change and it takes time for the new devices to be implemented and accepted.
So, if you’re eager to tap into the senior care industry, you have to keep in mind all the above mentioned facts, details and statistics on the industry, understand the intricate details and then take a plunge. Make sure you keep in mind your capabilities of tapping into this industry so that you may know whether or not you can actually bring in returns in this industry.