A new report from Willis Towers Watson says that liability insurance rates for senior living and long-term care providers are expected to increase next year.
The report projects an increase for the insurance product ranging from 5% up to 30%; Willis Towers Watson’s “Marketplace Realities 2018” report says the increases are due to several factors – namely, the increasing volatility of the long-term care liability marketplace, greater underwriting pressures, and healthcare providers putting more emphasis on the profitability of their operations.
Willis Towers Watson managing partner and Senior Living and Long-Term Care Centers of Excellence leader John Atkinson warned, however, that the actual increases could exceed 30%, depending on the long-term provider.
“The gravity of the rate increase, or the size of the rate increase, is specific to the individual risk characteristics of the operator, related to venue or jurisdiction issues, acuity levels, and the loss history of the specific account,” Atkinson told Skilled Nursing News.
He added that the volatility might also be a product of the “right-sizing” of accounts that have gone underpriced for some time.
Other factors identified by the report that are contributing to the long-term care liability rate increases include class action lawsuits, natural disasters, and expanding litigation.
Atkinson prefaced that increased litigation is one of the primary reasons for rising rates for senior living and long-term care providers in states such as California, Florida, and Illinois.