The senior living industry is under increasing strain as rising insurance costs put pressure on both operations and resident care. Premiums continue to climb, leaving many operators vulnerable to market volatility and struggling to understand why some competitors manage to hold costs steady. Scott Reese, CEO of Echo Assurance, offers a different perspective. With deep expertise in insurance placement and firsthand insight into the operational challenges that drive costs higher, he reframes the issue as one of strategy rather than inevitability.
The Real Problem Behind Rising Premiums
Most operators assume premium increases are just part of doing business. That mindset is exactly why their bills keep climbing while competitors manage to keep costs stable. Scott Reese has been working closely with the senior living sector for more than twenty years, placing over $2 billion in insurance premiums. As an investor, he has also seen the direct strain rising costs put on operational quality and resident care. “I’ve seen it firsthand,” he explains. “Insurance costs aren’t just numbers on a spreadsheet. They affect how facilities operate every day.” When Reese talks about insurance pressure, it is not theory or abstract analysis. He has lived it alongside his clients. And what he sees now is a fundamental shift in the way carriers evaluate risk—one most operators have yet to recognize.
The uncomfortable truth is that insurance companies have moved on from old benchmarks, while many operators are still using outdated playbooks. The result is predictable: climbing premiums that feel unavoidable. “If your costs keep rising while others stabilize, the problem isn’t necessarily the market, it’s your strategy,” Reese points out. It is a tough message for operators who believe they are doing everything right, but one that could determine whether they stay competitive.
Storifying Your Way to Better Rates
Most brokers approach insurance the same way. They shop around for policies and hope something sticks. That is not strategy, it is wishful thinking. Reese takes a very different path with what he calls “Storify.” Instead of pleading for lower premiums, his team uses data to reframe how insurers view risk. “Most brokers shop policies and hope for better rates. That is not a strategy, that is a gamble. We flip the script. We Storify your submission,” Reese says. The difference can be dramatic. One senior living operator faced an 80 percent rate hike that would have wiped out their margins. Instead of scrambling for a cheaper policy, Reese’s team rebuilt the case from the ground up. “We turned that into 9 percent savings. Not by switching carriers, but by using data to change the risk story,” he explains. The operations never changed. What changed was the way the story was told, and that shift turned crushing costs into sustainable savings.
Getting Ahead of Claims Before They Happen
Insurance companies no longer base their decisions only on claims history. They want to understand how a facility is run and whether it is likely to face problems in the future. This is where many operators fall short. They react to problems after they happen instead of showing insurers how they prevent them. “Our risk map approach offers a proactive overview that highlights potential operational issues before they turn into claims. In our experience, prevention is the best claim,” Reese says. The goal is not only to avoid claims, though that matters. It is also about demonstrating to insurers that your facility is a lower risk investment. Operators who adopt this model often maintain strong CMS and survey ratings while keeping their claims experience clean. The added benefit is that the process improves day-to-day operations, not just insurance outcomes.
Taking Control with Alternative Risk Transfer
Premium volatility drives operators crazy. One year insurance costs are manageable, the next year they soar. Alternative Risk Transfer (ART) programs offer a way off that roller coaster. Instead of being at the mercy of market swings, operators can take control of their own risk. “ART puts you in control, letting you pool some or all of your own risk, retain underwriting profits, and stabilize costs year over year,” Reese explains. And this is not just for large national chains. He has designed custom ART programs for operators of all sizes. “You do not need to be a massive chain to benefit, just someone ready to lead,” he adds. The key is being willing to take ownership of your results rather than treating insurance as a commodity purchase.
The operators who get ahead shift their mindset. They stop seeing insurance as just another bill and start using it as a tool to protect the business and strengthen performance. Done well, it safeguards staff, protects residents, and preserves margins. “Insurance is not just a cost. It is a performance lever. Used right, it protects your people and your NOI margin,” Reese says. The choice is clear for operators. Continue doing what everyone else does and accept rising costs. Or take control and use insurance the way successful operators already are.
Connect with Scott Reese on LinkedIn to learn more about transforming insurance into a strategic advantage.
