Aon: Leader in human resources, reinsurance & risk Risk

2012 Long Term Care General Liability and Professional Liability Actuarial Analysis


Loading

Long term care liability loss rates and claim severity have reached an eight-year high and are expected to grow steadily in 2013 against a backdrop of health care provider budget constraints and uncertainty about health care reform, according to Aon Risk Solutions, the global risk management business of Aon plc. This analysis is reflected in the 2012 Long Term Care General Liability and Professional Liability Actuarial Analysis from Aon Global Risk Consulting and published in partnership with the American Health Care Association.

Since 2005, the annual loss rate (liability costs relative to occupied long term care beds) has grown from $1,040 to a projected $1,480 in 2012 and is expected to increase again in 2013 to $1,540, according to the report based on 19,500 individual claims from long term care facilities. Claim severity (claim size) also has grown from a low of $109,000 per claim in 2005 to a projected $168,000 per claim in 2012 and $175,000 in 2013. Claim severity and loss rates have been growing consistently since 2009 at a rate of 4 percent annually, even though claim frequency has been stable since 2008.

Read more. Download the 2012 Long Term Care General Liability and Professional Liability Actuarial Analysis.



Aon welcomes relevant dialogue and commentary on our thought leadership materials posted to our website. However, we reserve the right to delete any content that is harmful, obscene, or spam before it is published to the site.

If you elect to comment or engage with our content via third-party social media websites, you authorize Aon to have access to certain social media profile information. Please click here to learn more about information that may be collected when using these tools on Aon.com