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Industry divided on Catmarks for LTC

The Government should rule out imposing Cat standards on long-term care products, according to actuarial consultancy Bacon & Woodrow.

In its response to the Treasury&#39s consultation on LTC regulation, Bacon & Woodrow claims LTC is a complex product in an underdeveloped marketplace that does not need the imposition of minimum benchmarks.

Aifa&#39s response to the consultation says there is a case for Catmarks but only as a temporary measure until the product is better established. It says such a measure should not be seen as a gateway to execution-only business as other Catmarks have been interpreted.

However, the ABI and LTC provider PPP Lifetime Care welcome Catmarks, which they see as a necessary benchmark both to advisers and consumers on the value of a product.

All the parties responding to the consultation exercise, which ends this week, support immediate regulation of the market but most reject extending regulation to other protection products because of the delay that would mean.

B&W Associate David Gulland says: “I would counsel against the option of widening the scope of proposed regulation to include other health products at this time. This could delay the further implementation of appropriate regulation for LTC insurance.”

PPP Lifetime Care LTC marketing manager Paul Bennett says: “Introducing Cat standards will not replace the need for regulating the advice for LTC insurance and immediate needs products.”


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