Insurer will no longer write new business or invite renewals from January 2015
Hiscox Insurance is pulling out of the the care home insurance market next year, Insurance Times has learned.
The insurer will continue to write new business and invite renewals until the end of December 2014 but it will not be offering renewals or writing new business from January 2015.
The insurer said the decision had come as it looked to adjust its portfolio and refocus on core lines of business – which did not include care homes.
A Hiscox spokeswoman told Insurance Times: “I can confirm we are withdrawing from the care home sector. Our withdrawal from the care home sector does not represent a change in strategy.”
David Waters, managing director of broker Care Home Insurance Service (CHIS), which has a £2m account with Hiscox, described the news as “very sad”.
Waters said: “Hiscox has explained that its decision is based on actuarial projections for future claims, which it believes will escalate considerably.
“All of us here at CHIS believe they are sadly misguided and do not see how claims can rise from the care sector alone to such unacceptable levels. However, when two major insurers withdraw from any sector we have to take note.”
The broker is now in discussions with a number of capacity providers over finding a replacement.
Jelf also has a £150,000 facility with Hiscox.
Jelf Insurance chief executive Phil Barton said: “They have decided to retreat from the market in a controlled and systematic way, working in collaboration with Jelf.
“Hiscox remains a major partner for Jelf and we are actively developing new attractive segments of the market.”
This decision by Hiscox to exit follows a similar move by Ecclesiastical, which withdrew from the care home market in March this year, except for care homes run by charities and churches.