While demand for private health cover may be stabilising overall, ‘very difficult times' are predicted for individual policies. Nicolas Culley finds innovation and customer service are key in fighting the channel's decline.
She said: “We are constantly tightening our belts and will continue to do so. We do not see any sunny uplands or light ahead. It is really difficult at the moment.”
Sales removal
It was “relatively early days”, Macdonald said to talk about the aftermath of removing intermediary and direct sales of individual PMI – by taking Bupa’s ClientChoice, Bupa Care, Local Care, Local Hospital Care and Essential Care products off the market.
But she added: “It will impact positively because the channel was destroying value for us and did not make sense. But that does not mean we are not still working with intermediaries. They are key to our business.”
At the moment, in the PMI space, Bupa is challenging poor clinical practice and agreeing charges with consultants to provide customers with more certainty.
Macdonald said: “We are trying to make our products as affordable as possible .”
In this way Bupa has been focusing on patient needs and clarity around what they are paying for, but there is a limit to what the insurer can achieve, Macdonald said.
She added: “The Competition Commission inquiry is looking at PMI now so we will be playing our part in that. Now with PMI it is a question of value.
“This is the toughest economy in 100 years. People need to know they get the best value if they are paying.
“Part of that is client service and helping them to get the right health care. There is good and bad healthcare.”
And Bupa is not alone with its focus on customer service to drive growth. Healthcare adviser-consolidator Chase Templeton has been taking feedback on customer service very seriously.
The firm has been growing organically and by acquisitions. The most recent firm to be swept up was Perfect Health, run by ex-Association of Medical Insurance Intermediaries (Amii) chairman Andrew Tripp.
It has added £8m premium income to Chase Templeton’s portfolio which now stands at £90m.
