--- title: 10% Insurance Savings and 30% Digital Infrastructure Savings for an Independent Seniors Housing Developer | Novem description: From escalating premiums and overruns to lower Total Cost of Risk Ownership and stronger Net Operating Income on a new community. image: https://www.novemdigital.com/hubfs/novem-resources/cs-seniors-housing-insurance-savings.jpeg --- [![Novem](https://www.novemdigital.com/hubfs/raw_assets/public/NovemZulbera_27/images/logo.png) NOVEM](https://www.novemdigital.com/?hsLang=en) [Platform](https://www.novemdigital.com/platform/?hsLang=en) [Industries](https://www.novemdigital.com/industries/?hsLang=en) [TCRO](https://www.novemdigital.com/tcro/?hsLang=en) [Partners](https://www.novemdigital.com/partners/?hsLang=en) [Resources](https://www.novemdigital.com/resources/?hsLang=en) [About](https://www.novemdigital.com/about/?hsLang=en) Contact Us [![Novem](https://www.novemdigital.com/hubfs/raw_assets/public/NovemZulbera_27/images/logo.png) NOVEM](https://www.novemdigital.com/?hsLang=en) [Platform](https://www.novemdigital.com/platform/?hsLang=en) [Industries](https://www.novemdigital.com/industries/?hsLang=en) [TCRO](https://www.novemdigital.com/tcro/?hsLang=en) [Partners](https://www.novemdigital.com/partners/?hsLang=en) [Resources](https://www.novemdigital.com/resources/?hsLang=en) [About](https://www.novemdigital.com/about/?hsLang=en) Contact Us ![Newly built independent seniors housing community at dusk](https://www.novemdigital.com/hubfs/novem-resources/cs-seniors-housing-insurance-savings.jpeg) Case Study # 10% Insurance Savings and 30% Digital Infrastructure Savings for an Independent Seniors Housing Developer Case Study Seniors Living A Western Canadian independent seniors housing developer 6 min read Share Download PDF *From escalating premiums and overruns to lower Total Cost of Risk Ownership (TCRO) and stronger net operating income on a new community.* 10% Insurance cost reduction 30% Digital infrastructure savings 1% Total construction cost reduction **10% Insurance Savings and 30% Digital Infrastructure Savings for an Independent Seniors Housing Developer** From escalating premiums and overruns to lower Total Cost of Risk Ownership and stronger Net Operating Income on a new community. Solution Provider: Novem | Customer: A Western Canadian independent seniors housing developer | Location: Western Canada | Asset: New mid-market independent living community ## **BACKGROUND: Protecting Margins In A Tight Seniors Housing Market** A Western Canadian independent seniors housing developer designs, builds, operates, and retains mid-market communities in a market where construction inflation and compressed margins put every project under scrutiny. Leadership knew that even a 1% change in total project cost could materially shift returns and exit value. At the same time, resident expectations around safety, air quality, and reliability have increased while staffing remains tight. The developer needed a way to reduce risk-related costs and protect cash flow without compromising resident experience. ## **THE CHALLENGE: Rising Risk Costs Treated As A Fixed Line Item** Before engaging Novem, the developer faced three converging pressures. - Insurance premiums across course of construction, wrap-up liability, and post-occupancy programs were volatile and hard to forecast, even on projects delivered on time and without claims. - Construction budgets were under pressure from global cost drivers the team could not control, eroding returns before buildings opened. - Resident expectations around air quality and battery-driven appliances were increasing fire and safety risk at the same time as margins were tightening. Internally, risk-related costs were treated as something to absorb rather than something that could be engineered and reduced with data. The owner needed clear answers to basic questions: How is risk being controlled, who owns the data, and how does it translate into lower Total Cost of Risk Ownership and better insurance positioning. ## **THE SOLUTION: Three Policies, One Lifecycle, Enabled By A Property Risk Platform** The developer partnered with Novem and a strategic insurance broker to manage construction and operational risk as a single, data-driven lifecycle instead of a series of disconnected decisions. ## **Coordinated Insurance Lifecycle** Novem and the broker helped design and sequence course of construction, wrap-up liability, and post-occupancy property programs as one continuous financial tool for the asset. All three placements were aligned, informed by shared risk data, and structured to recognize proven improvement over time instead of assuming worst-case scenarios. ## **Property Risk Platform And Converged Infrastructure** Novem deployed its Property Risk Platform (PRP) that spans both construction and operations, anchored by a converged optical infrastructure and targeted monitoring of key risks. The platform focused on: - Water systems and water damage risk - Security monitoring - Mechanical and electrical construction quality - Arc flash and fire risk - Air quality in resident spaces Instead of siloed systems, the owner, operations, finance, broker, and insurers gained a shared, structured view of risk drivers and operating performance. ## **Predictive Operations And Productivity** Success metrics were defined in financial and operational terms: reduced Total Cost of Risk Ownership, protection of cash flow, and support for stronger staff to resident ratios. Early visibility and prioritized actions allowed teams to shift from reactive problem solving to predictive operations, so staff could focus on resident care while avoiding surprise costs. ## **BY THE NUMBERS: The Impact** - 10% reduction in insurance costs across construction and post-occupancy programs - 30% reduction in digital infrastructure capital spend versus the original budget - 1% reduction in total construction costs when insurance and digital infrastructure savings are combined These improvements were achieved without compromising safety, coverage, or resident experience. ## **WHAT THE NUMBERS MEAN** The 10% insurance reduction proves that insurance is no longer a fixed, uncontrollable expense. By sequencing three programs as one lifecycle and backing them with continuous risk data, the owner can work with brokers and carriers using measured performance rather than assumptions. The 30% digital infrastructure saving demonstrates that a smarter approach to platform, connectivity, and monitoring frees capital without increasing risk. That capital can be redirected into wellness features, contingency reserves, or additional care capacity. Combined, these effects reduce total construction cost by 1%. At portfolio scale, that supports stronger project returns, more predictable Total Cost of Risk Ownership, and higher asset values while protecting the standard of care that residents and families expect. Critically, the developer is now monetizing data. Construction and operational risk data has become a negotiating asset with insurers and lenders, converting better real-world performance into lower premiums, better terms, and more defensible capital decisions. ## **THE TRANSFORMATION: Life Improves For Owners, Partners, And Residents** For owners and investors: The developer now has a repeatable approach to design risk-related costs into every project rather than absorbing them after the fact. With a single risk dataset and audit-ready evidence from Novem’s platform, leaders can answer board and lender questions about resilience, wellness, and construction risk with one clear narrative. For finance, operations, brokers, and insurers: All stakeholders work from the same evidence instead of disconnected reports. The broker can present underwriting-grade data that supports better terms, including the 10% premium reduction already achieved. Continuous performance data informs decisions on deductibles, limits, and structures as more history accumulates. For residents, families, and staff: Behind the financial outcomes is a more stable environment for seniors living independently. Fewer preventable failures and disruptions mean fewer unit closures, fewer emergency repairs that displace residents, and less time spent in crisis mode by staff. Families gain confidence that buildings are monitored and managed proactively, not left to chance. ## **LOOKING FORWARD: A Model For Independent Seniors Living** The developer is now applying this model across its independent living portfolio in Western Canada. Each new project is designed from day one with a Property Risk Platform, coordinated insurance lifecycle, and continuous monitoring that makes failures predictable. As performance evidence grows, the owner expects to further strengthen insurance positioning, improve capital planning accuracy, and support strategic discussions with lenders and partners. ## **CONFIDENTIALITY AND NDA** This case study is anonymized to protect customer confidentiality. Under NDA, Novem can share full customer identity, underwriting evidence, and detailed financial and technical results with qualified insurers, lenders, and strategic partners. ## **ABOUT NOVEM** Novem is an artificial intelligence (AI)-powered Property Risk Platform for institutional real estate portfolios, built to confront invisible risk: the unmonitored systems that stay quiet until a preventable failure becomes a multi-million-dollar claim, years of insurance premium increases, and a board asking for evidence that was never assembled. We understand the responsibility of protecting people, capital, and confidence when that evidence is fragmented. Novem turns building, claims, and operational data into a defensible view of risk so Chief Financial Officers and asset owners can predict and prevent equipment failures, reduce Total Cost of Risk Ownership (TCRO) and insurance costs, protect net operating income (NOI), and support stronger asset valuations. See what predictive looks like for your portfolio. Get a live walkthrough of the Novem platform with your use case. [Estimate Your Savings](https://www.novemdigital.com/estimate-your-savings/?hsLang=en) Contact Novem ## How can we help? Pick the path that fits where you are. Every route reaches our team. [Estimate Your SavingsSee what predictive operations could save your portfolio. Reviewed by our team.](https://www.novemdigital.com/estimate-your-savings/?hsLang=en) [Book a DemoSee the platform live and what it surfaces in your portfolio on day one.](https://www.novemdigital.com/get-a-demo/?hsLang=en) [Talk to an ExpertHave a question first? 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