The Association of British Insurers (ABI) has called for regulatory changes on financial products in the long term care sector.
Speaking at the All Party Parliamentary Group on Housing and Care for Older People, Nick Kirwan, assistant director for health and protection at the ABI called for regulation to make advice more available and the products more flexible.
He was answering points raised by Janet Morrison, chief executive of Independent Age, who said: "Alongside a Government social contract for care, we need to build in at the design stage requirements for information and advice.
"We support the law Commission in its call for a statutory duty on local councils to oversee and ensure delivery of professional advice.
"This does not mean they deliver it , but that they are able to to ensure independent advice is available to people.
"People also need access at a range of stages both as they are about to enter the social care system or even in advance, so that they are able to plan ahead."
Kirwan noted that people can only plan ahead if they know what they are liable for, which means the system needs to be stable and clear.
"We need to know clearly what is available from the state so that there is clarity on the gap that is people's own responsibility," he said.
"It is important to remember that almost everyone who will enter care in the next 20 years has already done all the saving that are going to do. And in the main they have not prepared in advance.
"Dilnots proposals have an important effect; that if people are going to have care costs metered, whether or not they are a self funder, there is an interest in having that meter switched on and that is a fantastic opportunity to have a strong signal to say to people get financial advice'
"Whether or not Dilnot's recommendations come into being or not, the industry need regulatory changes to ensure that firstly that people get financial advice and also to ensure people have more flexible tools to meet their financial needs than at present."
