The ABI has backed a Government announcement it will set up a commission looking into the funding of long term care.
The plans were contained in a white paper 'Equity and Excellence: Liberating the NHS' released this week. The commission is to report within one year and is due to produce recommendations for legislation in the second session of this Parliaments term.
Nick Kirwan, assistant director of health and protection at the ABI, said: "We are very pleased to hear that the Government is looking into the funding for long term care. The industry is very keen to get involved in this. I believe we have an important role to play."
Speaking at the ABI Savings and Protection Conference, he noted that 2,500 people a week enter long term care, with 41% getting no state funding.
He added: "By way of context we see three generations that need to be considered.
"First are those going into care right now, they have a specific set of needs as the emergency is on them.
"The second we might think of as the already retired who don't yet need care - the first group are typically 85 plus while this group are typically 65 plus. This group are different as they have done all the saving they will be doing and the extent to which they can plan ahead is limited to any assets they currently hold. The industry currently finds it difficult to deal with this group.
"The third group are pre retirement with the ability to save. However they are overwhelmingly are not saving enough for their retirement. The focus here is getting them to save so they can consider nearer to retirement what to do with it."
