Scottish Provident has vehemently denied reports that it is to enter the long term care market this autumn.
Recent press speculation has claimed that Scottish Provident is to launch a unique tax-efficient insurance product by December. But Roger Edwards, the company’s product marketing manager, indicated that some reports had jumped the gun and altered the emphasis of comments made.
Edwards said Scottish Provident had done extensive research into the long term care market but had not yet decided on a launch date for future products.
Although it is Scottish Provident’s firm intention to enter this market, products are still in development.
Edwards said: “A foray into the long term care market will help the company consolidate its position in the protection market.”
He added: “We believe this market will grow quickly. We have looked at all the current products and concentrated on what we can improve upon. It has taken longer than we thought to get product ideas off the ground, especially as we want to come up with something which really meets the needs of our IFAs and our customers.”
Research has been carried out with selected IFAs, and some product ideas have been favourably received, according to Edwards. But he said he was unsure whether the company should move into the market now, or wait until the Royal Commission delivered its findings.
He said: “The uncertainty surrounding the future of the long term care market is an issue which needs to be addressed.”
Edwards said both the public and intermediaries should be educated about the need for long term care products for sales to improve.