Norwich Union endorses government proposals on long term care regulation

Norwich Union would like to pledge its support for the Government's announcement on 21st December that proposed introducing CAT standards for Long Term Care Insurance and recommended full regulation of the market.

In a long-awaited document that put forward four possible options, the government came down in favour of full regulation of the LTCI industry, a decision that will be applauded by both older people and leading providers in the industry.

Sandy Johnstone, LTC Strategy Manager at Norwich Union, commented:

"We are delighted that the Government is now addressing this issue and announcing a preference for full regulation (option 3). The main objective at this stage has to be that good consumer advice and protection in the long term care insurance market is delivered as quickly as possible, bearing in mind that so much is set to change in the provision of care in the New Year.

"On the subject of CAT standards, we welcome the fact that The Committee saw fit to involve the insurance industry right from the start. We believe that these standards will foster a higher level of consumer understanding which will lead to informed choices being made.

"We now have the prospect of consumer protection and education all in the one package. This is bound to move the market forward and, at last, we are released from all the uncertainties of the past. 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 trading brand of holding company, CGNU plc, which was created from the merger 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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