There's a new report out today looking into possible role for pre-funded consumer insurance in the long-term funding of social care in England and Wales.
The report, from the Strategic Society Centre, argues that even if the UK were in the future to achieve a level of take-up of 15% for pre-funded care insurance - equivalent to France (which has the highest take-up in the world) - this would still result in a social care system that was under-funded, means-tested, excessively rationed, and with many households confronting ʻcatastrophicʼ bills for paid care.
The report concludes that there are many other roles that the financial services industry
could take in long-term care funding reform, particularly around delivering and servicing a
state-sponsored insurance scheme for long-term care. The report cites case studies such as
ʻElderShieldʼ in Singapore and the long-term care insurance scheme of the Netherlands.
This comes as various stakeholders have consistently advocated a central role for financial services, and pre-funded consumer insurance in particular.
Recently Lord Warner, one of the members of the Dilnot Commission which is looking into this area, dropped heavy hints that a voluntary approach towards insurance would form part of the solution.
Warner sees the solution as a partnership between the state and the individual. The question is the balance between the two.
However Stephen Burke, director of the social enterprise, United for All Ages, said the commission should consider fair levies on estates.
The report, from the Strategic Society Centre, argues that even if the UK were in the future to achieve a level of take-up of 15% for pre-funded care insurance - equivalent to France (which has the highest take-up in the world) - this would still result in a social care system that was under-funded, means-tested, excessively rationed, and with many households confronting ʻcatastrophicʼ bills for paid care.
The report concludes that there are many other roles that the financial services industry
could take in long-term care funding reform, particularly around delivering and servicing a
state-sponsored insurance scheme for long-term care. The report cites case studies such as
ʻElderShieldʼ in Singapore and the long-term care insurance scheme of the Netherlands.
This comes as various stakeholders have consistently advocated a central role for financial services, and pre-funded consumer insurance in particular.
Recently Lord Warner, one of the members of the Dilnot Commission which is looking into this area, dropped heavy hints that a voluntary approach towards insurance would form part of the solution.
Warner sees the solution as a partnership between the state and the individual. The question is the balance between the two.
However Stephen Burke, director of the social enterprise, United for All Ages, said the commission should consider fair levies on estates.
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I have previously written here expressing
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