The ABI and Government have signed a joint Statement of Intent setting out steps needed to help people understand their long term care costs and plan to ensure adequate funding.
The Statement sets out how the insurance industry will work with the Government alongside the implementation of the Care Bill to:
• help people get the information and regulated advice they need to plan and make decisions, and
• create the right conditions for a larger market of financial products which will give people more choice.
The Statement is based on the view that long term care provision will increasingly become an integral part of wider retirement planning.
While the market for long term care products is currently limited, it should adapt as the number of consumers looking for such products grows.
The Government and ABI will do all they can to encourage the market conditions most conducive for the development of a full range of products to suit different needs.
Otto Thoresen, ABI's Director General, said: "We have supported the introduction of a new care funding model, and believe the Care Bill provides a sustainable framework for both industry and consumers.
"The Statement of Intent sets out our commitment to working with the Government to create the conditions for the development of an insurance market that offers a range of products to help people meet their long-term care needs."
Care and Support Minister Norman Lamb added: "The current care and support system doesn't work and is hugely unfair.
"People face losing almost everything they've worked hard for or being forced to sell their family home in a time of crisis to pay for the care they need."
