Ansvar Insurance, a leading specialist insurer for the care sector, is urging providers to take proactive steps to safeguard their services against key risks that threaten their operations.
The local care industry is facing increasing challenges, with rising demand and evolving risks putting pressure on providers. According to the latest data from the Welsh Government (April 2025), 48,519 adults in Wales had a care and support plan in place at the end of March 2024 – an increase of around 2.5% compared to the same period in 2023 [1].
At the same time, care providers are dealing with staff shortages. In Wales, the care sector vacancy rate has improved slightly, falling from 9% in 2022 to around 6% by early 2025, according to figures cited in the Welsh Government’s 2025-26 draft budget. These challenges are expected to intensify with changes to UK immigration rules, which will further restrict the recruitment of overseas care workers.
David Eccles, Head of Distribution at Ansvar, commented:
“The care sector is facing both operational and financial challenges. While the Health and Social Care (Wales) Act 2025 is likely to have a positive impact, care providers will not benefit immediately. It’s therefore crucial that they are aware of the growing risks and take proactive steps to mitigate them.”
Alongside rising demand and workforce shortages, the sector faces growing cyber risks. Increased reliance on digital systems makes data breaches a serious financial and reputational threat. In the UK-wide sector, care providers that experienced at least one cyber incident in the past three years faced an average cost of £9,528 per incident [2].
At the same time, there is the pressure to uphold health and safety standards, reduce the risk of personal accidents, manage public liability exposure and remain fully compliant with a complex regulatory landscape.
David Eccles added:
“There’s no doubt that care providers across the country deliver outstanding support to those who need it most. With the right strategies in place, they are well-positioned to navigate today’s challenges and continue making a vital difference in their communities.
“By regularly reviewing risk management practices, investing in staff development, strengthening cybersecurity and ensuring their insurance is tailored to the unique needs of the sector, care providers can move forward with confidence and resilience.”
