Inventor of critical illness insurance deems sector "stupid" for LTC failings
By Johanna Gornitzki
Insurers and intermediaries have to resurrect the long term care (LTC) market or the protection sector will fail, an industry expert has warned.
Speaking at the COVER Protection Forum, held last month, Dr Marius Barnard, the inventor of critical illness (CI) insurance, called the protection sector "stupid" for letting LTC disappear off the radar and become obsolete in the UK market.
"Some 15 years ago, the LTC market was thriving, but now no one talks about it and LTC almost sounds like a curse word.
"Why don't you mention it now?" Dr Barnard asked the delegates, adding that he was "ashamed" of the industry for failing to sell it.
"I believe that we should now start with an active drive in the UK for LTC or your industry will fail," he added.
LTC was one of the most popular products in the market around 15 years ago, but now there is only one provider left selling it.
Dr Barnard said it was the duty of the industry to offer LTC for "people when they are old and can't take care of themselves anymore", but added that a combined effort - involving the Government, the media and the industry - would be needed to revive the cover.
Thanks to medical advances, people are now living longer and the need for LTC has become more acute, said Dr Barnard, adding that life expectancy had risen, with over 36 and 37 years for men and women respectively since 1900.
He was aware that there would always be people criticising his pledge to bring back LTC, but said: "When I first created CI, people said it was too difficult and it won't sell, but now it is one of the most successful protection products in the market. I hope LTC will gain similar success."
He added: "You don't only need insurance because you are going to die, but because you are going to live and grow very old."
