The commercial insurance market for long-term care operators “is in a state of flux, influenced by both lingering effects of the pandemic and broader economic factors,” Janice Loper, vice president at Hamilton Insurance Co., wrote in a recent blog for the National Investment Center for Seniors Housing & Care.
Loper noted the COVID-19 pandemic did not have quite the negative effect on insurance in the field as many expected, “as many operators avoided major losses due to court closures, which led to a backlog of cases and significant delays.” According to Loper, the result was that insurance companies were able to settle claims for less than they would have under normal circumstances, “resulting in deflated losses compared to typical industry losses.”
The effect was “perceived profitability” for providers, according to Loper.
“Additionally, previously dormant markets began to ramp up operations, increasing competition and driving down pricing. As a result, operators are seeing savings on their renewal premiums and favorable quotes on new acquisitions,” Loper wrote.
Although things are looking up in terms of cost savings and increased competition for insurance coverage, Loper cautioned providers to “stay vigilant, adapting to changes in underwriting practices, market conditions, and emerging risks” to navigate the changing landscape of commercial insurance.
Read her entire blog post here.
