The IFoA together with Independent Age have produced a joint report, Will the Cap Fit? What the government should consider before introducing a cap on social care costs, assessing changes to social care funding policy and the potential implications of those changes. The report aims to encourage Government to develop a social care system that is sustainable in the long term as soon as possible as the current system is in crisis and is likely to worsen in the face of an ageing population.
What you will get from the report
- An understanding of why the current social care system is unsustainable and in crisis
- An assessment of various proposed levels for a cap on care costs and the impact those levels will have on cumulative care costs
- Policy recommendations for Government
A carefully designed care cap could provide a means of social insurance, which previously has not existed, in order for families to plan for later life with certainty. Our report assesses the amount individuals would have to contribute towards their own care based on:
- A £35,000 cap, based on the Dilnot Report
- A £72,000 cap, contained in the Care Act
- Our proposed all – inclusive £100,000 cap
These scenarios are applied to a range of typical pensioner households, varied by gender, age, region, and level of assets and income on starting to pay for care. This allows us to demonstrate the impacts and likelihood of individuals benefitting from a cap or means-test based on their specific circumstances.
We recommend implementing an all-inclusive cap of £100,000. This would cover all cumulative care costs, unlike the caps proposed in the Dilnot Report or in the Care Act. This would provide individuals, who have the means to pay for their own care, clarity on their likely future care costs, with them having to pay for the first £100,000 and costs beyond this met by the state. This would reduce complexity and make the balance between individual and State provision easier to understand.
Key findings include:
- An ‘all-inclusive cap’ set at £100,000 protects those who live longer than average in residential care and truly caps the full range of care costs for those with high care needs.
- Unless the cap is all-inclusive, taking into account accommodation and daily living costs, individuals will pay more than £150,000 by the time they have been in care for six years and £300,000 by the time they have been in care for ten years.
- The £100,000 all-inclusive cap reduces variation in total care costs between regions in England. Under the £72,000 cap, care costs can vary by over £130,000 by year 6 between the North East, where the costs are lowest, and South East, where the costs are highest. The £100,000 all-inclusive cap reduces this variation to just £2,000.
- Only the £35,000 cap, proposed by the Dilnot Report, and the all-inclusive £100,000 cap will provide protection to those who live longer than expected in residential care.
For further information on any of our public affairs or policy work please contact us on:
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View the full schedule of webinars in this series via this link.
This webinar series will provide topical and practical updates and discussion on the latest thinking and innovations in mortality and longevity, and is designed to be very accessible to a broad range of experience.
Part of the Mortality and Longevity webinar series. As an industry, it has been important to be able to look to the future to identify the next quantifiable risk. In this session, I will explore some of the less tangible, but none-the-less concerning risks to future health, such as the health risks associated with exposure to pesticides, ingestion of plastic in the food chain, and the hazards of indoor air pollution through exposure to volatile organic compounds.
Part of the Mortality and Longevity webinar series. The working party will help the industry to update and enhance how potential risk from diabetes and excess mortality is considered, including the need to understand the underwriting implications as treatments improve, and potentially to develop new products that are tailored to those with diabetes.
A Trusted Profession
This free 1 hour CPD webinar is designed to meet the IFoA’s Stage 3 Professional Skills Training under the IFoA’s CPD Scheme 2019/2020 and is suitable for actuaries working in any area (i.e. it is not specifically aimed at Pensions, GI or any other technical discipline) and is interactive.
Modelling the structure and trends of cancer morbidity risk is important for pricing and reserving in related health insurance fields such as critical illness insurance and care provision. We model the dynamics of cancer incidence over time in different regions in England, using 1981-2016 ONS data. The modelling allows estimation of cancer rates at various age, year, gender and region levels, following a Bayesian setting to account for statistical uncertainty. Our analysis indicates significant regional variation in cancer incidence rates.
In this talk we will outline the steps Aviva took in pulling together our first large-scale disclosures on the exposure of our business to climate change published in March 2019; in line with the recommendations of the Taskforce on Climate-related Financial Disclosures. After touching on why insurers have such an important role in climate change, we'll cover a brief “how-to” guide for those who have not yet embarked on thinking about these topics before giving a case study of how the learnings from a TCFD disclosure exercise can be applied to investment portfolios.
The insurance industry currently underwrites customers with diabetes based on a range of factors, medical expertise and various medical studies. The work undertaken by the Diabetes Working Party would help the industry to approach this using current research findings to update and enhance how potential risk from diabetes is considered. This includes the need to understand the underwriting implications as treatments improve, and potentially to develop new products that are tailored to those with diabetes. This webinar will present our latest findings in the management of this important chronic condition which will include research in collaboration with the ARC.
This event is now fully booked. To join the wait list, please register here.
Get ready for the new CPD Scheme launching on 1 September. Join us for a discussion on what the new Scheme will look like in practice. There will be an opportunity to field questions to the IFoA Executive on how the Scheme’s requirements will affect you.
There will be a prestigious line-up of international speakers discussing the insurance and financial industry’s innovation and change in Asia. The conference will take place throughout September via an online platform. The webinars consist of plenary speaking sessions and a series of workshop sessions including Life, GI, Data Science, Sustainability, Risk Management and Investment.
This will be the perfect opportunity for you to discover,ask questions and be at the forefront of current and developing actuarial/financial topics and trends in Asia.
In this webinar we will provide an insight into enterprise-wide risk management in banking, showing similarities to the world of insurance as well as identifying differences. Just as insurance companies have to submit an ORSA, so bank’s have to submit their own equivalent, the Internal Capital Adequacy Assessment Process or ICAAP.
This free 90 minute webinar is designed to support the IFoA CPD Co-ordinators, and others, involved in supporting our members to achieve their CPD requirements.
The programme will include an overview of the new CPD Scheme; specifically sharing with you key messages to support you implement and embrace the new CPD Scheme for our members within your organisation and regional community; how to arrange a reflective practice discussion; and an interactive reflective practice discussion learning exercise. In addition, delegates will gain information about accessing, and making the most of the IFoA event Toolkits which you can make use of to run your own in-house events and events for regional communities.