Another insurance broker withdraws from care sector
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Hiscox Insurance has announced its withdrawal from the care sector. The firm will continue to write business through to 31st December 2014 but after these policies expire in 2015, it will not offer renewal.
This news comes hard on the heels of Ecclesiastical, which also withdrew from the care sector at the end of last year. David Waters, managing director of Care Home Insurance Services (CHIS), said Hiscox’s decision was based on actuarial projections for future claims, which it believes will escalate considerably.
“Our analysis of the risk profiles of our clients does not bear out Hiscox’s projections,” said Mr Waters.
“All the care businesses we pass on to underwriters are of exceptional quality and carefully selected. However, the withdrawal of Hiscox is undoubtedly a significant market development and, with two major insurers leaving the sector, it is only prudent to take note. At CHIS and PrimeCare Insurance Services we are reviewing our portfolio of insurers and finalising our strategy to ensure our offering continues to lead the market.
“The insurance market is hardening as insurers seek to combine an increase in their premium rates with a reduction in their exposure to risk, so care businesses must keep claims to a minimum if comprehensive cover is to remain accessible and affordable. Our advice to care home owners is to implement rigorous risk management policies and carry out health and safety assessments, using an external risk consultancy to ensure regulatory compliance where appropriate.”