The Association of British Insurers (ABI) and Government have today signed a joint Statement of Intent which sets out the steps needed to help people understand their long term care costs and plan to ensure adequate funding.
The Statement sets out how the insurance industry will work with the Government alongside the implementation of the Care Bill to:
- help people get the information and regulated advice they need to plan and make decisions, and
- create the right conditions for a larger market of financial products which will give people more choice.
Otto Thoresen, the ABI’s Director General, said:
"The insurance industry can play an important role in developing solutions to help people fund their long-term care needs. We have supported the introduction of a new care funding model, and believe the Care Bill provides a sustainable framework for both industry and consumers.
"The Statement of Intent sets out our commitment to working with the Government to create the conditions for the development of an insurance market that offers a range of products to help people meet their long-term care needs.”
Care and Support Minister, Norman Lamb, said:
"The current care and support system doesn't work and is hugely unfair. People face losing almost everything they've worked hard for or being forced to sell their family home in a time of crisis to pay for the care they need.
"Our reforms will not only stop this from happening but will provide the industry with the certainty it needs to develop products that can help people plan for the future. I welcome this commitment from the industry and am excited to see how they take on the challenge of helping transform the way we pay for our care."
The Statement is based on the view that long term care provision will increasingly become an integral part of wider retirement planning. While the market for long term care products is currently limited, it should adapt as the number of consumers looking for such products grows.
The Government and ABI will do all they can to encourage the market conditions most conducive for the development of a full range of products to suit different needs.
Read the Statement of Intent (pdf 254kB)
See more photos on the ABI Flickr Photostream