Rising insurance premiums survey
The NCF Finance Forum recently considered the issue of rising insurance premiums across the care sector. We decided it would be helpful to work with our industry partners to better understand the current situation and 30 organisations responded to the December 2013 questionnaire.
Findings show that 73.3% of organisations (22) reported increases in premiums in contrast to 6.7% reporting a reduction and 20% no change. The majority of increases reported were of up to 10% (9 organisations), with a further 5 reporting increase of more than 10%, 5 reporting an increase of more than 25%, and 3 organisations reporting higher increases; 1 of more than 50%, 1 of more than 75% and 1 of more than 100%.
The majority (63.3%) reported no significant changes to their operations which might affect a change in insurance premium and 9 organisations (30%) reported some increased activity or service capacity. Of those reporting no significant changes to activity; 26.3% recorded no premium variation, 5.3% recorded a premium reduction, but the majority (68.4%) reported increased premiums. The majority of reported increases are in the up to 10% group. However, the higher increases reported in this sample, in one case a premium increase of more than 100%, are more of a concern.
About a third of respondents reported to have their covers subject to a Long Term Agreement. However 50% of respondents had investigated alternative providers at last renewal: 30% had decided to stay with their existing provider and 20% had switched provider.
A copy of the confidential report is available in Finance Forum resources (restricted to members only because it contains commercially sensitive information). We would like to record our thanks to all those members who participated in the survey.
Capita Care (insurance brokers) have been a partner of the NCF for 10+ years and sponsored many events over that time. We greatly appreciate their continued support. Capita Care assisted the NCF Finance Forum in the preparation of this survey and they would be happy to talk to members wishing to discuss their insurance needs.
The NCF Finance & IT Systems Forum meets and shares email correspondence regularly to discuss matters and share best practice. Forum meeting dates for 2014 are available online and members are welcome to send a representative please email to register your attendance.