The ABI admits that the framework for LTC desperately needs changing in 2008
By Johanna Gornitzki
The regulatory framework needs to change for the long term care (LTC) market to be resurrected, according to the Association of British Insurers (ABI).
Calling for the Government to ensure the LTC market is covered by the right regulatory framework, the ABI argued that it is a must if LTC is ever going to be revived.
Nick Kirwan, head of health and protection at the ABI, said: "LTC is currently the single most regulated product in the UK so it is not surprising that not a lot of advisers are authorised to sell it. We need appropriate regulation to combat this."
Apart from sorting out the regulatory framework, there are four other things the ABI wants to see change, including a higher level of risk sharing and the right incentives for people offering better ring fencing. Better use of pension assets and more awareness of the need for LTC are also needed, it claimed.
Kirwan added: "Our argument is that we think it is a national problem that needs a national solution. All parties need to play an active role in it."
n This month, COVER's focus is on LTC insurance. For in-depth articles please turn to pages 24-29. To have your say about how the LTC market can be resurrected please visit www.covermagazine.co.uk.
