Rate predictions: Senior living
| Trend | Range | |
|---|---|---|
| Senior living healthcare professional liability |  |
+5% to +15%* |
| Property |  |
+5% to +15%* |
| Auto | |
+10% to +15% |
| Workers compensation |  |
-5% to +5% |
- Loss development and difficult venues continue to be intensely scrutinized.
- Markets are frequently reluctant to deploy significant capacity in such litigious venues as NY, NJ, CA and FL. Other less-than-desirable venues are Philadelphia and Cook County, IL.
- Capacity deployed continues to be $5 million to $10 million depending on carrier.
- Coverage issues continue to be class action, punitive damages, communicable disease versus limited pandemic/epidemic/COVID.
- Staffing shortages are an ongoing issue and we’re seeing greater reliance on staffing agencies.
- Overall, rate deceleration appears to be flattening as carriers seek more rate and deeper underwriting reviews.
- Underwriters are reviewing losses carefully for signs of “acuity creep,” particularly those within independent living communities.
- Open communication and highlighting risk management achievements go a long way toward achieving an optimal underwriting result.
Property
- Loss control visits continue to be frequently required prior to quoting, especially for senior living organizations with larger schedules of values.
- Markets for senior living risks are limited and experience higher-than-average rate increases. Frame construction or buildings without adequate sprinkler protection are even more challenging.
- Water damage coverage and catastrophe-prone locations continue to experience higher deductibles.
- Builders risk coverage for new senior living construction continues to be very challenging, but strong risk management protocols will set your project apart and generate better marketplace results.
- We’re seeing closer scrutiny of business income/rent roll exposures, which require a business income and extra expense worksheet to substantiate reported values.
Auto liability
- Resident transport exposure is underwritten stringently and carriers are most comfortable with an incidental amount. Market options for these exposures are limited. Partnerships with ride-share organizations are often considered as a means of addressing resident transport needs.
- Mono-line auto risks are challenging to place and should be leveraged with other lines of business.
- Certain senior living communities offer valet services, which present a new risk consideration in this space and frequently require a specialty insurance placement.
Workers compensation
- Underwriters continue to focus on controls, safety culture and claim reconciliation or lessons learned post loss.
- Monoline placements are common, as some markets have broad workers compensation appetites and are comfortable writing without supporting business.
- Slips, trips and falls present the most prevalent injuries in the senior living community setting, and organizations with strong protocols to address these colleague risks fare better during the risk underwriting process.
Disclaimer
Willis Towers Watson hopes you found the general information provided in this publication informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, Willis Towers Watson offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).
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