Market Spotlight: Assisted Living

The past 18 months have been difficult for the senior living industry. COVID-19 created many challenges for facilities across the sector and insurance markets responded with carrier exits, creating capacity shortages. That trend pushed rates higher for the remaining carriers in this space. While COVID hasn't yet delivered the litigation uptick that was originally expected, there continues to be "to be determined" expectations, according to Robert Blasio, managing director, GB Specialty, at Gallagher Bassett in Houston. "Around the country, there were many COVID outbreaks in senior living facilities. However, a lot of states implemented legal immunities against healthcare providers in senior living," he said. That stopped some litigation. Blasio says such immunity statutes for COVID do not impact other claims trends that were already affecting the sector, including a five to 10-year trend of rising claims for punitive damages or exemplary damages. Cases that make it to jury are still a cause for concern, he said. "What I've seen over the last 10 years is an ever-increasing exposure for those cases that get tried," he said. That has a corresponding impact on total settlement values. That trend is consistent across all of healthcare, but is certainly prevalent in senior living, he said. So how COVID ends up playing out in the senior living market remains a "TBD," he added.