Emerging Trends in Aging Services
As the largest provider of insurance products and services to the aging services industry, CNA understands this business segment and its challenges.
Over a six-year period, our claims experience has noted some alarming trends:
- Claims have doubled in some sectors of the aging services industry.
- Average indemnity payments have increased by 60 percent.
- Claim outcomes are similar across the country and all levels of aging services, resulting in minimal differentiation between not-for-profit and for-profit facilities, as well as among setting types, i.e., skilled nursing care, assisted living and independent living.
As double-digit increases in claim costs have compounded over multiple years, venues that were previously considered conservative are now vulnerable to the negative effects of the upward trajectory. With no relief in sight, aging services providers must ready themselves for the financial realities of a new marketplace.
Some insurance companies have consolidated in response to the current climate, while others have exited the marketplace. These changes have led to a market shift, characterized by a high demand for coverage, a reduced product supply and the imposition of stricter underwriting standards. A changing market calls for action as resources and partnerships are tested. I'm proud to tell you exactly where CNA stands:
- After 50 plus years as a healthcare insurance leader, we are committed to the aging services industry and are working diligently and purposefully to withstand this challenging market.
- We proudly partner with our customers to address coverage needs, mitigate risk exposures and strengthen their defense posture in the event of litigation.
In fact, I've authored a special resource that details the factors affecting aging services€ including the adverse litigation environment and highlights risk management principles that aging services providers can use to mitigate potential risk exposures.
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