Claims, Work Problems, Natural Disasters Drive Insurance Premium Increases

Premiums for property and professional insurance have risen steadily since the start of the Covid-19 pandemic, and new research shows that this trend is likely to continue in 2022.

Nearly half of all respondents to the latest Executive Insights Survey from the National Investment Center for Seniors Housing & Care (NIC) said property and casualty insurance premiums have risen “a little” or “a lot” compared to before the pandemic.

The survey, the 43rd in NIC’s ongoing series, includes responses from 50 owners and managers of luxury homes and skilled nursing staff. Responses were collected between June 27 and July 24.

Among self-employed individuals, 74% reported that their home insurance premiums had increased compared to pre-pandemic levels. About a quarter of respondents said the increase was significant.

In the subsidized category, 79% of respondents reported an increase in home insurance, while 32% reported a significant jump compared to before the pandemic. Among memory care providers, 78% reported an increase and 25% reported that the increase was significant at that time.

Health insurance premiums have also increased during the pandemic, according to the study. Of the self-employed, 63% said insurance costs have increased since before 2020, with 14% indicating a significant increase.

A little less than three-thirds of workers who took part in the survey reported that the amount of insurance paid compared to the period before the pandemic, with 26% reporting a significant increase. Memory care workers reported the same, with 72% reporting more; 19% of those identified as important.

As for why insurance premiums have risen over the past two and a half years, respondents cited a variety of factors, including the lack of competition in local markets, concerns about the dangers of Covid-19 and lawsuits, the increase in natural disasters and the global economy. increase in frequency of statements.

Insurance premiums rose even two years before the pandemic, largely driven by “litigation pressures,” said John Atkinson, chief executive of insurance firm Marsh & McLennan (NYSE: MMC ). As was the case before the pandemic, resident-related health events such as falls are still the “majority” of insurance claims, with resident falls accounting for half of them.

But all this was exacerbated by the arrival of the Covid-19 pandemic, as well as by other headwinds such as a reduction in the number of workers in large groups and severe weather conditions.

“[In] “The issue of supporting the workforce is very important,” Atkinson told Senior Housing News.

And in terms of natural disasters, large companies living are at risk due to the large population living in markets with more opportunities for climate, such as the Southeast and the West Coast, according to Atkinson, .

For example, California and Florida have large populations, but these states experience high rates of flooding, wildfires and hurricanes, respectively.

“We’ve seen a significant loss in the senior care community – [such as] storms, which are polar waves and snow, which are hitting parts of the country more often than before,” he added.