Insurance Marketplace Realities 2026 Spring Update – Senior Living

Rate predictions: Senior Living

	Trend	Range
Senior living healthcare professional liability		Flat to +15%
Property		-8% to flat
Auto liability		+5% to +15%
Workers compensation		-5% to flat

Senior living healthcare professional liability

• The professional liability marketplace for senior living is split – longtime carriers in this space are diligently focusing on maintaining rate and moderating capacity, particularly in challenging venues, while new carriers entering the space are being opportunistic and looking to gain market share
• We’re seeing differing underwriting philosophies: In the more challenging venues, including CA, KY and NY, there’s a strong push for higher deductibles and a diminishing appetite, while in the non-litigious venues, there’s a strong appetite and greater flexibility
• Continued reduction of capacity, frequently seeing a maximum limit of liability offered by any one carrier of $5 million per layer
• Given the tremendous market demand for senior living, there is strong capital market investment interest, which is fueling more “shopping” of existing insurance programs as new owners of existing communities look to ensure optimal pricing and terms
• With this growth in senior living investment interest, we’re seeing a rise in senior housing valuations, which is generating an even greater spotlight on controlling operating costs such as insurance
• Insurers greatly appreciate the value in established insurer/insured partnerships with proven senior living operators and offer greater flexibility where an established relationship exists
• Look for defense costs to be outside the limit of liability as litigation costs are quicker than ever, eroding the limit of liability
• A strong resident care risk management program is a valuable asset to highlight for prospective insurers
  • Implementation of risk mitigation technologies, such as fall prevention measures, has increasingly become a regular topic of discussion
• Continued rise in the costs of litigation
  • One claim in a tough venue can upend the profitability of an insurance program for years to come, so underwriters very carefully underwrite tougher venues
• Indemnity payments have more than doubled over the past 10 years
• Higher claim costs for pressure injuries, elopements and abuse incidents
• Abuse coverage is still readily available in the marketplace including within the excess liability tower

Property

• The property marketplace for senior living has softened as reinsurance pricing has improved
• Accounts with favorable loss history and low CAT exposure are particularly reaping the rewards with additional rate decreases
• Accounts with challenged loss history, heavy CAT exposure or locations with non-mitigated risk exposures would be considered exceptions to the ranges above
• Markets have continued focused attention on deductible adequacy pertaining to CAT perils and water damage
• Reduced emphasis on overarching value corrections and more of an emphasis on inflationary value increases
• Senior living markets are limited and risks may experience higher-than-average rate increases if their loss experience is unfavorable
• Senior living risks entailing frame construction or buildings without adequate sprinkler protection are even more challenging
• Some smaller senior living risks are experiencing deductible increases

Auto liability

• Strong underwriting is utilized to address the potentially catastrophic risks associated with auto liability
• Close attention is being paid to risk-control programs such as:
  • Motor vehicle record (MVR) reviews – both upon hiring and annually thereafter
  • Driver training and general fleet auto safety
  • Telematics to track and monitor fleet driving activities
• Auto is generally paired with property or workers compensation, but PL/GL can also be leveraged depending on the carrier – the market environment for stand-alone auto, including hired and non-owned exposure is challenging
• When marketing, it’s important to highlight established risk management protocols

Workers compensation

• Many markets for senior living have broad workers compensation appetites and are comfortable writing monoline without supporting business
• Monoline comp carriers tend to purchase less reinsurance less which in turn allows them to be more flexible with their appetite
• Underwriters continue to focus on controls, safety culture and “lessons learned” after a loss to prevent similar future losses
• Safety and health and return to work programs are key in this area
• Both owned auto and non-owned auto-driving exposures are underwritten closely from a workers compensation perspective