Market leads providers to expect spike in insurance costs

The marketplace for long-term care liability insurance is increasingly volatile, with greater underwriting pressures and a much more intense focus on profitability, according to a new report on the liability market from the advisory firm Willis Towers Watson.

Liability insurance rates for senior living and long-term care (LTC) providers are expected to go up anywhere from 5% to 30% in 2019, according to the report. But John Atkinson, managing director and leader at the Senior Living and Long-Term Care Centers of Excellence at Willis Towers Watson, told Skilled Nursing News that he’s seen rate increases north of 30%.

“The gravity of the rate increase, or the size of the rate increase, is specific to individual risk characteristics of the operator, related to venue or jurisdiction issues, acuity levels, and the loss history of the specific account,” he noted.

The volatility might also reflect the “right-sizing” of accounts that have been underpriced for a period of time, Atkinson added.

SNFs are no stranger to high liability insurance bills; Willis Towers Watson’s spring 2018 commercial insurance update found expected increases for the current year ranging from 5% to 20% and a decreased capacity as carriers either cut back on their LTC presence or exit the space entirely.

More of the same is predicted for next year, according to the “Marketplace Realities 2019” report. Some of the factors compounding risks in the sector include class action lawsuits, natural disasters, and expanding litigation, according to the report, which covers the liability market in a range of business lines.

Read the full story at Skilled Nursing News.

Topics: Finance , Medicare/Medicaid , Uncategorized