BOSTON: Insurers have rebuffed a government call for new products to cover the cost of caring for the sick and the elderly, dealing a blow to the governments attempts to reduce the financial burden of old age.
Several companies signed a ‘statement of intent’ a year ago saying they would do all they could “to encourage the market conditions most conducive for the development of a full range of products to suit different needs”.
However, to the consternation of ministers, the industry has been slow to come forward with so-called ‘pre-funded care’ products.
The industry is concerned that many people think long-term care is free, making it harder to persuade them to think about taking out protection for care costs.
However, the difficulties of sustaining a market for pre-funded long-term care insurance have been demonstrated in the US, where the market is in steady decline…