Article date: 28 December 2000
Norwich Union would like to pledge its support for theGovernment's announcement on 21st December that proposedintroducing CAT standards for Long Term Care Insurance andrecommended full regulation of the market.
In a long-awaited document that put forward four possibleoptions, the government came down in favour of full regulation ofthe LTCI industry, a decision that will be applauded by both olderpeople and leading providers in the industry.
Sandy Johnstone, LTC Strategy Manager at Norwich Union,commented:
"We are delighted that the Government is now addressing thisissue and announcing a preference for full regulation (option 3).The main objective at this stage has to be that good consumeradvice and protection in the long term care insurance market isdelivered as quickly as possible, bearing in mind that so much isset to change in the provision of care in the New Year.
"On the subject of CAT standards, we welcome the fact that TheCommittee saw fit to involve the insurance industry right from thestart. We believe that these standards will foster a higher levelof consumer understanding which will lead to informed choices beingmade.
"We now have the prospect of consumer protection and educationall in the one package. This is bound to move the market forwardand, at last, we are released from all the uncertainties of thepast. The Minister, in her statement, described LTCI as important;I couldn't agree more."
Notes to editors
1. Norwich Union is the UK life and general insurance tradingbrand of holding company, CGNU plc, which was created from themerger between CGU and Norwich Union on 30 May2000.
2. Norwich Union is the UK's largest life and pension company(based on 2000 new premium income).
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