The insurer says a complex risk environment and hardening insurance market has called the insurability of many aged care providers into question.
Speaking at LASA’s 10 Days of Congress, Ansvar CEO Warren Hutcheon says the sector needs to be prepared for frequent disruptions and continued public scrutiny.
Mr Hutcheon says class actions and negative findings from the Royal Commission are likely to put pressure on the availability and pricing of insurance protection moving forward.
As a result, only organisations with mature risk management frameworks in place will be able to purchase suitable protection at affordable premiums.
But this is not possible without strong leadership, he argues.
“Risk maturity will not just happen- risk leadership is critical,” Mr Hutcheon says.
“Boards and Executives play a key role. What we have seen across the sector is that when risk leadership is prioritized, more effective frameworks are embedded and there is a greater sense of comfort with managing key risks and improving organisational outcomes”.
Ansvar currently insures more than 800 aged care providers in Australia.