Major insurer pulls out of the care home sector
Ecclesiastical Insurance, the largest provider of insurance in the UK care home sector, is withdrawing from the care home insurance market, with the exception of charity operated care homes.
The change, which is expected to take place from 1 March, is expected to have considerable implications both for the insurance market and for care homes.
David Waters (right), managing director of Care Home Insurance Services, an independent insurance broker, said: “Ecclesiastical currently insures around 30 per cent of all care homes in the UK, more than any other insurer. Its withdrawal from the care market will come as another ‘body blow’ to the care industry.
“The market is likely to harden in the coming months with other insurers likely to reconsider their own position and almost certainly looking to increase their premiums and quite possibly limit their exposures. We are hearing that abuse cover is likely to be restricted by many insurers from 1 January.”
Mr Waters added: “The failings of certain care home operators have been well documented in the media and the increase both in the frequency of litigious claims and the rise in the costs of litigation have coincided with a significant number of care homes coming under financial pressure.
“While it is saddening to hear of Ecclesiastical’s withdrawal, this latest development could just be the shot in the arm that prompts care home operators to overhaul their risk management and safety awareness.”