The global COVID-19 pandemic challenged senior living and long-term care owners and operators to manage heath, financial and operational risks at a scale the industry has never before experienced.
And while the industry must continue to remain vigilant of pandemic risks, Michael Pokora, leader of Marsh’s Senior Living & LTC Industry Practice, stresses that three emerging risks also deserve close scrutiny from owners and operators. They are:
- Climate change
- Cyber threats
- Emerging litigation
Climate change
Climate change is the No. 1 emerging risk for senior living and long-term care owners and operators because it has both immediate financial costs and long-term operational impacts. Rate increases in the property insurance market can be directly tied to the increased frequency and severity of events related to climate change.
“We have had 20 consecutive quarters of property rate increases, and we just published our Q3 data showing another 8% increase in Q3,” Pokora says. “One of the main factors driving the increase in senior care rates the past 20 quarters has really been around climate related issues: wildfires, flooding and now Hurricane…
