Government Bill makes future longterm care schemes problematic

Individuals should contribute towards future long term care costs but insurers will face a difficult task providing schemes to suit, according to a survey conducted by law firm Pinsent Masons LLP.

However, the insurance sector faces difficulty in tapping the market,  60% felt designing clear, simple, sustainable products was the biggest hurdle, 28% felt the problem was in assessing the risk, given increasing life expectancy.

Ian Smart, technical product manager at Bright Grey, denied there were problems assessing risk. He said: “These products can be looked at as IP policies, some have already been brought to market, but the problem is they look expensive.

“There have been a number of attempts in this market but they have never taken off in the mind of the public.”

The news comes after the Government’s consultation on the Green Paper about the future of the care and support system and the introduction of the Personal Care at Home Bill in the Queen’s Speech last month.

Pinsent Masons Insurance Partner Fiona Heyes said, “The Personal Care at Home Bill seems to undermine funding options set out in the social care green paper on which consultation has just closed and this only goes to highlight the difficulty facing insurers in entering this market. Without any clear guidance, it’s difficult for insurers to design policies which will be sustainable in 20 or even 40 years time.”

A majority (80%) of delegates at a series of healthcare seminars agreed people should pay towards at least some of their future care costs, while 48% believed that people are still not currently doing enough to cater for their needs.