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2022 General and Professional Liability Benchmark Report

The largest study of its kind, our report looks at nearly 11,000 closed claims featuring separate analysis for long-term care and senior living providers.

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02/28/2023 · 6 minute read

Learn about frequency, severity, and loss rate trends impacting senior living and long-term care providers.

Nearly fifty providers of senior living and long-term care services submitted data for this analysis. Our analysis focuses on paid and closed claim data comprised of nearly 11,000 closed claims with approximately $1.87 billion in paid indemnity and expense over the past ten years. In total, this analysis includes the exposure associated with approximately 265,000 senior living and long-term care units. Using ten years of claims experience through December 31, 2021, we project 2022 outcomes and forecast results for 2023.

Senior living forecast 2023

1.4%

increase in claim frequency

2.1%

increase in claim severity

3.5%

increase in loss rates

For the first time, we’ve separated claims and exposure data into senior living — those exposures related to independent living, assisted living, and memory care providers  — and long-term care — those exposures related to skilled nursing facilities. We took this additional step in our analysis as we recognize the importance of understanding the unique exposures and claim treatment in each setting. Underwriters bifurcate these risks so it’s important for providers to see this distinction in the data. Further, jurisdictions can treat these settings differently which impacts the claim trends as well. For example, Kentucky has the highest loss rate for long-term care providers which is likely in part a result of the available causes of action and recoverable statutory damages specific to long-term care providers. 

It is also important to understand the unique challenges to each setting. This helps providers identify the high-risk claim areas when looking to tailor and enhance their risk management processes. Future studies showing these distinctions will be interesting to monitor as consumers continue to look to age-in-place.

Long-term care forecast 2023

0.4%

increase in claim frequency

3.5%

increase in claim severity

4.0%

increase in loss rates

The principal findings in this study are developed on a countrywide basis over the past ten years along with projected 2022 experience. State-level findings can be found in our full report. The charts below depict:

  • Frequency - the number of claims estimated to close with payment (indemnity or expense) per 100 occupied units
  • Severity - the average ultimate size of a claim estimated to close with payment (indemnity or expense)
  • Loss rate - the cost needed to pay indemnity or expense per occupied unit

It’s no surprise that falls continue to be the primary loss driver for both senior living and long-term care providers, or that wounds are the second primary loss driver for long-term care providers given the acuity of the residents admitted and retained in that setting. What is concerning, however, is the significant number of wound claims shown for senior living providers. This result emphasizes the importance of understanding these claims and implementing proactive risk management processes to identify and manage residents who develop (or are admitted with) wounds. This is particularly important as we continue to see the growing utilization of home-and-community-based services (HCBS) in senior living. Also, it’s notable that “abuse” is the second highest cause of loss for senior living. It is important for providers to have admission processes to identify individuals with pre-existing behaviors or conditions that contribute to behavioral issues. Further, providers should have strategies to manage resident behaviors and processes to recognize when discharge is appropriate because the environment may be inappropriate and staff are not able to manage the resident’s behaviors.  

Also addressed in the report are the current claim trends observed with COVID-19 claims. However, as set forth in the study, there are still a significant number of open COVID-19 claims. These open claims continue to be litigated in courts with an aggressive defense since the impact of available federal and state liability protections is still uncertain. In subsequent reports, we will be have deeper insights of the ultimate impact of COVID-19 on senior living and long-term care claim trends.

Explore our full report to learn more including indemnity and expense statistics, cause of loss analysis, and the impact of close lag.

Ready to learn more?

2022 General and Professional Liability Benchmark Report for Senior Living and Long-Term Care Providers

Download the report

Our specialists work with operators and equity partners to develop clinical and risk management support tools and diagnostic risk assessments to substantially impact the claim trends observed from this report. In addition to these tools, we host webcasts and provide educational risk insights gleaned from the study, along with recommendations for effective solutions that can provide real, long-term reductions in causes of loss.

Our people

John Atkinson

John Atkinson

Senior Living & LTC Industry Practice Leader

Michael Pokora

Michael Pokora

Senior Living & LTC Industry Practice Leader