Robust Care Home Insurance is essential for coping with looming financial challenges
Insurance markets face uncertain times ahead, as acknowledged by all the leading organisations tasked with overseeing an uncharted route through the murky waters of Brexit.
As OECD chief economist Laurence Boone stated upon launching an Interim Economic Outlook report last month: “Trade tensions are starting to bite, and are already having adverse effects on confidence and investment plans.”
Such concerns are echoed by both the language and plans set out by related bodies like the IRSG who, although calling for ‘global regulatory coherence’ in a recent report, simultaneously admit that this doesn’t look like happening. Chair Mark Hoban describes industry engagement as having been “partial and disjointed” at the same time as warning of further turmoil away from Brexit concerns, joining in with the predictions of a ‘growing debt crisis’ being on the horizon.
All this leaves the experts questioning whether markets will remain open or free moving forward, or whether the turmoil will lead to a completely different landscape that all sectors will have to make major adjustments to meet.
Financial Conduct Authority Chair, Charles Randall, concurs when criticising the overall approach of financial sectors as being based on a ‘cycle of deregulation, crisis and regulation’.
In a speech earlier this month at the Association for Financial Markets in Europe (AFME) Annual Conference, he included the care sector as being a point of potential crisis aside from the whole Brexit issue, saying: “There are pressing social issues such as the cost of housing, low financial resilience in general and unsustainable personal debt in particular, and inadequate saving for retirement and care in later life.”
Those who follow care sector news will recall that the Government failed to live up to a commitment to introduce a cap on personal care insurance, as advocated by the Dilnot Commission which published its recommendations back in 2011.
Since the failure to meet this objective, the Government has suggested very little to answer the issue of rising personal care costs experienced by a rapidly ageing population. Nevertheless, the issue does still receive some media coverage, unlike the costs involved with insuring care homes themselves, which receives little in comparison.
Perhaps this is understandable, however, care home owners themselves need to be aware that such financial turmoil will impact on all insurance markets, tripping up the unwary and unprepared especially.
Indeed, as ever with insurance products, preparedness is always the best remedy when there is uncertainty ahead. This is why Phoenix Specialist Risk Solutions have designed their insurance products so they can be tailored to each care home’s unique circumstances and easily adjusted mid-term when requirements change.
Such versatility becomes more essential wherever uncertainty is a factor, but there is a positive side. The care industry has been shifting and changing for many years now so has grown used to having to reinvent itself and transform to suit a new landscape, meaning that perhaps the sector will prove among the more robust in adjusting to whatever changes lie ahead.
More details: Phoenix Specialist Risk Solutions
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