The Treasury could be recommending “beacon products” to guide long-term care insurance standards before the end of the month according to industry insiders.
It is understood these products will provide an example or beacon to ins urers on what LTC products should feature. It is also likely they will form the basis for consultation over whether the product should be regulated.
Sources claim beacon prod ucts could emerge as the Treasury's response to recommendations made by the committee on long-term care inv estment products which was established to devise a set of “reliable and effective” reference characteristics for LTC.
The response is expected to be published at the end of this month.
A source close to the committee says: “I have seen the committee's draft recommendations to the Treasury which recommend so-called 'beacon products'. These specify some standards which LTC products ought to meet.”
The Treasury's response is likely to form the basis of a public consultation on what level of regulation is required for LTC products.
The ABI confirms it was involved in the committee. Media relations manager Vic Rance says: “We are pleased to be involved in this and there is talk of some sort of model product that it would be good for all products to match.”
The Treasury will not confirm whether beacon products would be recommended alth ough it says LTC products would be well-suited to bench-marking.
The new First Minister for Scotland Henry McLeish is preparing a U-turn on LTC provision and have Scotland foot the bill for nursing care in residential home.
The rethink is a departure both from Westminster and McLeish's predecessor, the late Donald Dewar.