ABI round up on care home insurance

Thursday 4 March 2021

In response to member queries, ALARM contacted the Association of British Insurers (ABI) for an update on issues of care home insurance resulting from the pandemic. The result of a recent meeting with the ABI are the points discussed below.

In addition, ALARM asked for ongoing involvement in discussions with the Government and the insurance industry on this topic. Further meetings are scheduled. Of course, we will continue to report our findings to members.

We have also reached out to partners and sponsors for specialist input on the subject of care home insurance and will be following up with specific guidance through our member channels. Please keep a look out on the website for further news.

  • Insurers are aware of their moral duty to continue insuring existing customers, although there has been a rise in premiums.
  • Most insurers are risk averse on taking on new customers with a low Care Quality Commission (CQC) rating. The Government position has been reported that if a care home cannot secure insurance due to poor administration immediate action should be taken to improve the rating. This will increase chances of insurance.
  • There are no exclusions on employers’ liability as this is illegal. Some exclusions exist in public liability coverage, specifically around notifiable diseases due to the high risk. Not all insurers are applying these exclusions.
  • There were concerns regarding reinsurance but there are currently no significant issues.
  • The ABI regularly updates the Government on market trends and feedback from key insurers.
  • The ABI is in discussion with the Government about future pandemic insurance.
  • The ABI has worked with the Government to create a scheme to cover designated settings. This applies to employers’ liability across the entire care home and public liability in the designated setting only. This is due to be reviewed and the ABI will update ALARM on details.

If any ALARM members have further queries regarding the above, do not hesitate to contact me via the ALARM Office at admin@alarmrisk.com.

Graeme Mackenzie, President, ALARM

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