LTCI: ABI calls for pilot scheme to increase uptake of long term care insurance
Local authorities acting as introducers to IFAs for the sale of long term care insurance (LTCI) could become a reality if plans for a pilot scheme announced by the Association of British Insurers (ABI) come to fruition.
Speaking at the London COVER Forum, Richard Walsh, head of health at the ABI, outlined the Association's plans to raise awareness among the elderly of the need to plan for LTC costs and the options available. It is also looking at how access to funding can be improved for those needing care.
The scheme would be based on local authorities identifying people who might need to make provision. Acting as an introducer direct to IFAs, they would then encourage people to take out some LTC protection. At least one local authority is considering the scheme, although the ABI could not disclose details.
Walsh explained: 'We know the State will not provide the funding people need to look after themselves should they be admitted to a nursing home, and that local authorities end up paying the bill. Rather than demanding funding from the State that will never happen, why not a partnership between the insurance industry and local authorities? If we can get a pilot scheme going and evaluate it, then if it works, other authorities might take it up.'
The plan was welcomed by IFA organisation for LTC, IFA Care. Graham Fidoe, IFA Care's chairman, said: 'Any initiative to encourage local authorities to direct enquiries to IFAs would be welcome. I think it is a great idea to encourage the general public to contact advisers. Also local authorities are at last realising this could ultimately save them money in the future.'
Walsh said the scheme could also see local authorities arranging tailor-made local policies. These would cover the fees of the specific local authorities' nursing homes, which could offer better rates than private homes.
