The recent letter from the National Real Estate and Housing Associations to the Biden Administration highlights a critical issue affecting our industry: the unsustainable rise in insurance premiums. This letter captures the challenges we face in providing affordable, quality housing amidst volatile insurance markets. Recognizing the gravity of this situation, this article explores the impact and discusses potential solutions.
The letter emphasizes the impact of rising insurance costs on property operations and the ability to deliver on the shortage of housing. For senior living developers specifically, these challenges are particularly acute. With the senior population expected to increase by over 40% by 2030, there is an urgent need to expand senior housing inventory. However, high-interest rates and increasing insurance costs pose significant barriers.
We understand the unique challenges faced by senior living developers. Specifically, our recent article on Builder’s Risk Insurance for wood frame senior housing developments provides insights into the current market landscape, including trends, challenges, and opportunities. The paper highlights that despite the increase in fire losses in 2023, there are reasons to be cautiously optimistic about the stabilization of base rates due to increased market capacity and competition among MGAs.
WTW stands ready to assist senior living developers in navigating these challenging times. By partnering with WTW, you gain access to our extensive resources, specialized teams, industry expertise, and commitment to finding innovative and sustainable solutions. Together, we can address the critical need for senior housing and ensure a stable future for your developments.
We invite you to reach out to our team to discuss how we can support your specific needs and help mitigate the impacts of rising insurance costs. Let us work together to build a sustainable future for senior housing.
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 subsidiaries of Willis North America Inc., including Willis Towers Watson Northeast Inc. (in the United States) and Willis Canada, Inc.
Zac joined the North America Construction team in 2023 as a Broking Lead specializing in the growing multifamily sector. Zac's primary responsibility is to spearhead inventive solutions for WTW's multifamily clients' risk management challenges, while also staying abreast of their evolving needs. In addition, Zac takes charge of nurturing client and carrier relationships and steering program strategies. With a strategic broker's mindset, Zac is unwavering in his dedication to securing optimal solutions for his clients by leveraging robust carrier partnerships and pioneering problem-solving techniques. His track record boasts top-notch results in the multifamily builders risk domain.
Wayne is the North American Senior Living Industry Leader with WTW. He brings over 25 years of insurance and risk management experience including 20 years as a broker. Wayne has extensive experience at designing risk management and insurance programs for diverse healthcare and life science firms across the U.S and UK.
