1. abcd AGEING POPULATION - Burden or Benefit? 20-22 January 2002 Balmoral Hotel, Edinburgh

2. Long Term Care Issues for Insurers Ian Sissons 22nd January 2002

3. The Market Drivers Demographics –High numbers at high ages –Higher proportion at high ages Gaps in insurance cover

4. The Uncertainties Advance funding for high age care costs Protection against care costs at young ages Facilitate asset-to-income transfers when care needed Limit impact of cost uncertainties when in care

5. Why are we here? Elderly forced to sell houses Conservative Green Paper Royal Commission NHS Plan Legislation/Regulations –England –Scotland –Wales

6. Related financial & other benefits “Free” nursing care (England - 3 levels) “Free” nursing & personal care (Scotland) “Free” nursing care (Wales - single band) Means test on assets Attendance allowance Pensions The house & other assets

7. Insurance Product Solutions Immediate Annuities Deferred Annuities Single premium bonds Regular/single premium pre-funding products Add-on benefits

8. Issues for Insurers Claims triggers Claims control Benefit levels Mortality in care Guarantees

9. And the answers are: still being worked on

10. AGEING POPULATION - Burden or Benefit? 20-22 January 2002 Balmoral Hotel, Edinburgh