Social care reform could see insurance products fail Consumer Duty: ABI

Would fail to provide fair value

John Brazier
clock • 4 min read

The government’s delayed Social Care reforms could result in protection insurance products failing fair value tests under the incoming Consumer Duty, according to the Association of British Insurers (ABI).

Within the Prepare for Care report, published on 9 February, the insurance trade body warned that under the new reforms, more insurance and long-term savings policyholders would receive less receive less financial support for social care from their local authority. Based on research carried out by the Pensions Policy Institute, the ABI stated that due having such a policy would mean local authorities would consider payments from the plans as part of an income. As a result, support from local authorities for care costs could be reduced or even cancelled altogether under the current ref...

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