The nascent long-term care insurance (LTCI) market needs to be regulated with a more flexible mechanism than cover, access and terms (CAT) standards, actuaries Bacon & Woodrow have warned.
“LTCI is a complex and, as yet, underdeveloped marketplace, and we can't endorse the development of minimum benchmark standards for a product still in its infancy,” said David Gulland of Bacon & Woodrow.
“The simple use of cover, access and terms is not sufficient to describe all
the aspects of a full LTCI policy.”
Gulland added that imposing CAT standards would run the risk of consumers buying the wrong product.
The Treasury consultation on long-term care is due to close on March 30.
