Services for the elderly

A large and growing market

Businesses providing services to the elderly provide more than $2 billion in premium and are expected to show strong growth in the future, according to data compiled by MarketStance, Middletown, Connecticut. Nursing home facilities provide the most premium at $814.2 million, or 40.5% of the total. This subgroup is followed by home health care services with $473.1 million (23.5%), services for the elderly and persons with disabilities with $368.4 million (18.3%), continuing care retirement communities with $181.6 million (9.0%), and homes for the elderly with $174.2 million (8.7%).

Middle market accounts offer the largest portion of the premium, with $1.4 billion coming from more than 17,000 enterprises. Nearly 40,000 small commercial enterprises in this category provide $333.1 million in premium. The plethora of small and middle market accounts makes this an attractive market for agents that can develop an expertise in this field and can find good carrier markets.

Services for the elderly and persons with disabilities have shown double-digit growth over the past four years in terms of both sales and employment. Although MarketStance projects that this will slow, growth will remain strong at an estimated annual rate of 6.3% and 5.3%, respectively. All subgroups are expected to show positive growth, although nursing home facilities are expected to experience growth rates of less than 1% annually in sales, employment and number of operating locations.

For more information about this and other niche markets, contact MarketStance at (888) 777-2587 or e-mail at info@marketstance.com. *