The sections on CII and LTCI are rather shorter than the others. These sectors of the market are much smaller than the PMI and PHI sectors. The products are newer, so that there is less experience on which to draw. In the case of LTCI, recent Government policy proposals are likely to have a material effect on the market. Although the four sectors are different in the cover they provide, and in market structure, a number of main themes run through this report.
Products are complex.
They also differ from each other in ways that make it difficult for consumers to compare the products on offer, even where these are aimed at similar needs. We have recommended that the industry should develop 'benchmark' products, which would allow comparisons to be made more easily. We have also recommended that the industry should develop common definitions of some frequently used terms. Perhaps because of the difficulty of comparing products, consumers typically do not shop around very much. Most individual purchasers buy direct from the company, though in some sectors there are significant sales through financial advisers.