A Look at Senior Living in 2020
The new year is upon us and we are gearing up to attack the ongoing and new challenges that the senior living industry faces. This blog post will touch on the top 3 challenges you can prepare your community for in 2020.
1. Professional Liability Costs
Like most senior living communities, you’ve probably seen the market for professional liability coverage tighten and adequate coverage is either limited or cost-prohibitive. In response, we created a professional liability insurance captive. AssureCap Indemnity LLC is an exclusive captive insurance program domiciled in Vermont and created for the benefit of select assisted and senior living communities. Captive insurance companies can provide advantages in risk management, insurance savings, and taxes.
2. Workforce Issues
Statistics show turnover rates are anywhere from 45-70% and upwards for most senior living communities with $2,500 being the average cost to replace a skilled employee. Here's a great industry trending report on recruiting and retaining talent. The report discusses this industry-wide challenge and the importance of offering low to no-cost voluntary benefits. As a Top 35 U.S. insurance brokerage with a specialized senior living practice, we've seen first-hand how voluntary benefits can be a game-changer for employees and your HR team.
3. Residents’ Financial Status
Incoming and prospective residents have different financials than the industry has previously encountered. Trends indicate that older adults will not have the financial resources to pay for senior housing, but at the same time their incomes will be too high to qualify for Medicaid, putting them in a predicament in terms of where they’ll spend their golden years. Senior living communities will have to respond and prepare for a more affordable option for the aging population.
Contact the Assurance ‘A’ Team to learn more about the senior living industry.
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