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Survey Report

Insurance Marketplace Realities 2025 Spring Update – Senior Living

May 2, 2025

The upward swing we’ve seen on rates beginning in Q1 2024 has levelled out recently, although we expect a modest upward rate trend through the spring and into the summer of 2025.
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Rate predictions: Senior living
  Trend Range
Senior living healthcare professional liability Increase (Purple arrow pointing top right) +5% to +15% (with excess experiencing the larger rate increases)
Property Increase (Purple arrow pointing upwards) Flat to +8%
Auto Increase (Purple arrow pointing top right) +10% to +20%
Workers compensation Increase (Purple arrow pointing top right) -5% to +5%

Key takeaways

  • Falls continue to be the loss leader from both a cost and frequency standpoint.
  • Nuclear verdicts continue to be a very significant concern and have caused insurers in this space to cut the amount of exposed limits on a given risk.
  • The recent passage of tort reform via Senate Bill 68 in Georgia is, hopefully, a sign that legislators around the country are becoming more sensitive to the growing costs of professional liability insurance. The litigious environment in senior living has been a barrier for too long, and it’s believed that tort reform will positively impact both residents and senior living operators.
  • Staff retention strategies are a helpful topic to highlight during the marketing process, as a stable workforce goes a long way toward the prevention of professional liability claims.
  • The upward swing we’ve seen on rates beginning in Q12024 has levelled out recently, although we expect a modest upward rate trend through the Spring and into the summer of 2025.
  • We continue to be advocates of establishing an open communication/partnership with the carriers on your liability insurance tower. Time and again, we see these partnerships paying off when faced with renewals in years following a difficult claim.
  • Utilization of carrier and broker healthcare risk consulting resources demonstrates your commitment to risk management and typically pays off well when highlighted during the marketing process.
  • The market has softened, especially for accounts with favorable loss history and low CAT exposure. Consider marketing to take advantage of the current market cycle.
  • Accounts with challenged loss history or heavy CAT exposure may see significant rate increases, much higher than the average range noted above.
  • Continued scrutiny on CAT retentions and sub-limits is the norm, they should be negotiated and considered relative to rate.
  • Senior living markets are limited and due to the habitational nature of senior living and market scarcity, risks may experience higher than average rate increases.
  • Frame construction or buildings without adequate sprinkler protection make the risk even more challenging and may rule out certain markets.
  • Loss control visits continue to be frequently required prior to quoting, so make sure to get into the market early in the renewal process.
  • Water damage coverage continues 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.
  • Replacement cost valuation continues to be a paramount concern for insurers in order to maintain a blanket limit of coverage. Aging buildings will require detailed information on age of the roof, plumbing and HVAC systems. Please be prepared to justify your reported values across all categories.
  • Auto is generally paired with property or workers compensation as it’s a high-loss leader and markets typically don’t want to write it on a monoline basis. PL/GL can also be leveraged/paired with the auto, depending on the carrier.
  • Underwriters continue to focus on and expect to see fleet safety programs that include controls for both owned and non-owned auto exposures. When marketing, it’s important to highlight established controls.
  • Resident transport exposure is underwritten stringently, and carriers comfort level is typically limited to 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.
  • Certain senior living communities offer valet services, which present a new risk consideration in this space and often-times require a specialty insurance placement.
  • Many markets have broad workers compensation appetites and are comfortable writing monoline without supporting business
  • Monoline workers compensation carriers tend to reinsure less of the risk, 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 losses in the future
  • When marketing your program, highlighting your safety, health and return-to-work programs is very helpful
  • Non-owned auto exposures are underwritten closely from a workers compensation perspective as injuries while driving your personal car on company business are typically compensable under workers compensation
  • Underwriters continue to focus on controls, safety culture and claims 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

To read more, download the full report below.

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Title File Type File Size
Insurance Marketplace Realities 2025 Spring Update PDF 12.7 MB

Disclaimer

WTW hopes you found the general information provided here 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, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).

Contact

Wayne Wills
Senior Living Industry Segment Leader, North America
email Email phone +1 404 224 5004
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