Long-term care providers and charities have welcomed the Government's decision to introduce Catmarked LTC products and expect full FSA regulation to follow.
The Treasury's announcement comes after months of speculation by the industry that Cat standards for LTC products were on the way.
It has put forward four options – voluntary regulation, partial regulation excluding advice, full regulation of LTC including advice and full regulation of all private medical insurance. The Treasury prefers the third option.
Age Concern says it has advocated full regulation for some time and its only criticism is the length of time older consumers have had to wait to see the decision made.
Providers say they already operate as if their products are fully regulated so the decision will not mean they will have to overhaul their product ranges.
Norwich Union LTC strategy manager Sandy John stone says: “We are delighted the Government is now add ressing this issue and ann ouncing a preference for full regulation. Cat standards will foster a higher level of consumer understanding.”
Age Concern England dir ector general Gordon Lish man says: “Older people have waited a long time to get to the point where the Gov ernment finally seem to have accepted the need to regulate. We welcome the idea of Cat standards although we will need to look closely at the proposed standards.”