Case study: Loss of incumbent insurance market

Case Study

Published

24 January 2023

Over the past few years, the Social Care insurance market has hardened beyond a level that many in the profession have seen. Unfortunately, there have been very few insurers with appetite to write business in this area. The outcome for operators is a reduced number of markets to approach and increasingly a prescribed underwriting approach from those insurers still providing cover.

Loss of incumbent insurance market

A care provider found themselves without cover after their longstanding insurance company withdrew from the market shortly before renewal. Due to the challenges posed by Covid-19, the operator's broker was unable to source cover, leaving them with limited options and only a matter of days left to find cover elsewhere. The operator was left vulnerable and exposed.

Howden were able to source terms for the care provider swiftly where other brokers had failed to help. Utilising strong insurer relationships, along with a detailed understanding of the market and the providers’ business, the Howden Care team worked tirelessly to secure adequate cover in time. By acting as a trusted advisor and intermediary between the care provider and insurer, Howden were able to carry out the broking process successfully during what could have been a very stressful time.

Be proactive not reactive

Operators need to take as many steps as possible to demonstrate continued excellence through favourable regulatory inspections where possible and a proactive risk management 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 proud to have been finding solutions for many providers who, having been insured elsewhere previously, have found themselves in a position where they have been unable to source renewal terms over this challenging period.

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]