Solution to care funding crisis
03 May 2019
03 May 2019
Society of Insurance Broking
The Society of Insurance Broking’s New Generation Group has stated that the issue of funding long term care must be addressed by the government and is not the responsibility of the private sector.
After examining the current state of care funding, the group, which is made up of more than 10 future leaders of the insurance profession, has outlined how insurance can sit alongside a political solution to later life care funding.
In a report titled ‘Caring for the Elderly: Is there an insurance solution,’ the group stated the government must provide funding to prevent the elderly having to sell their assets in order to afford care.
But the group noted simply pumping more funds into the current system isn’t a feasible long-term solution.
The group stated an insurance solution could work hand-in-hand with evolving government policy.
According to the group, immediate needs annuities, which are already available, should be marketed to younger people rather than at the point they are needed.
The group concluded this would allow younger people to prepare their finances differently to make sure they have enough cash available to purchase an annuity should it be required.
Liz Foster, non-executive director of the Society of Insurance Broking, said: “The results from this project show that the insurance market in the UK is ill prepared to adequately manage the care for an ageing population.
“With one in five people expected to live past their 100th birthday, it is important that the system is evolved from its current state to deal with the future demographic, wherein more than 25 per cent of the UK population will be aged 65 and over.”
To read the full report, please visit: https://www.sib.org.uk/media/10121287/new-gen-sib-long-term-care-report.pdf
Reace Novello, PR Executive
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Vanessa Chance, Director, Newgate Communications
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This document is believed to be accurate but is not intended as a basis of knowledge upon which advice can be given. Neither the author (personal or corporate), the CII group, local institute or Society, or any of the officers or employees of those organisations accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of the data or opinions included in this material. Opinions expressed are those of the author or authors and not necessarily those of the CII group, local institutes, or Societies.