3 Trends Disrupting Professional Liability Insurance for the Long-Term Care Sector
Today, the average life expectancy in the U.S. is over age 78, according to the National Center for Health Statistics. Industry observers report that 70% of individuals over the age of 65 will require some type of long-term care services during their lifetime. As the American population ages and baby boomers retire, long-term care facilities will be in high demand and the demands of those residents are dramatically different from those of prior generations.
Consequently, to improve their competitive edge and provide the level of care expected by seniors, long-term care facilities are expanding their service offerings. Beyond traditional medical services and assistance with daily living, long-term care facilities are now offering specialized memory care services, on-site physical therapy, access to doctors in-person and virtually, wound care, prescription delivery and short-term rehab services.
Additionally, to enhance the resident experience, long-term care facilities also offer amenities such as built-in movie theaters, a variety of restaurants, spa services, 24-hour concierge, transportation, golf carts, grocery stores and more.
Capital for the sector is growing, too. Mergers and acquisition activity remains high and ground is breaking on new construction projects across the country. Due to the impending “silver tsunami”, new medical professional liability insurers have entered the space, and as such, the market has experienced multiple years of declining rates due to competition. But as litigation increases and the cost of claims — both defense and settlement — increases, the marketplace is shifting.
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