Case study: Operator Rated ‘Requires Improvement’ by CQC

At Howden, we are aware that often the insurance market can look to load premium rates and restrict the cover provided for homes that are assessed by the CQC to be rated ‘Requires Improvement’ or ‘Inadequate’. These homes may see an increase in premium from their current provider, or in some cases - an unwillingness to invite to renew at all.

Operator Rated 'Requires Improvement' by CQC

The provider had been rated ‘Requires Improvement’ in all areas, subsequent to their latest inspection. Despite not previously having been rated anything less than ‘Good’ by the CQC, they  found themselves in a position where their current broker were unable to source terms and the covers were on a temporary extension with the current insurer. Time was expiring with no alternatives available.

Howden were able to source terms for the provider by presenting the risk to the market with a clear back story as to why the provider has been rated ‘Requires Improvement’ and by utilising strong insurer relationships to assist those who find themselves in challenging circumstances.

In this case, Howden were able to source cover and the provider was pleased to agree terms in time to avoid the alternative course of action which would have been to cease trading.

It is essential that care providers work with a broker who fully understands their business. Insurers gain comfort and confidence in underwriting a risk when they fully understand what has been presented to them, this significantly improves the prospect of obtaining terms, even in challenging circumstances. It is a broker’s role to work with both client and insurers to provide this comfort and achieve a favourable outcome.

Be proactive not reactive

Care providers need to take as many steps as possible to demonstrate continued excellence through favourable regulatory inspections where possible and a proactive risk management approach where ratings are, or have previously been less than ‘Good’.

1. Understand your market options in good time.
2. Give insurers sufficient lead-time to review your proposal. Do not wait for terms from your current provider.
3. If your regulatory rating is less than ‘Good’ or equivalent ensure you have an action plan and surrounding commentary, or an action plan to evidence improvements made.

Howden are delighted to announce that, as market conditions are showing signs of opening up, we are working with an Underwriter that is looking to offer standard terms to homes that have received a CQC rating of ‘Requires Improvement’. Together, we understand that often your previous CQC assessment is no longer reflective of the home, as inspectors may not have visited for long periods of time or you have taken steps to work on your action plan to improve certain areas. We have also seen that the claims and losses we see reflect better on ‘Requires Improvement’ homes than those rated in other categories.

To speak to Howden’s expert team about your insurance arrangements or to request a quote call us on 0117 205 1850 or email [email protected]