PPP healthcare has become the latest insurer to offer individually underwritten PMI to policyholders...
PPP healthcare has become the latest insurer to offer individually underwritten PMI to policyholders.
The scheme is currently being piloted via the company's direct arm and selected AXA business partners. If successful, the products will be launched to the intermediary market.
BUPA launched its individually underwritten plan, Heartbeat, in the Autumn.
Rather than underwriting on the basis of a few health and lifestyle-related questions the new approach will take a more individual view of each applicant.
Nye Jones, channel distribution manager at PPP healthcare, said: "This scheme will take a much closer look at the individual's personal circumstances. This enables us to offer premiums that reflect the applicant. It is a fair premium based on a unbiased assessment of risk."
The underwriting will take in a number of factors. These include medical history, location, age, lifestyle and gender.
Jones said that this means applicants will be able to access more comprehensive PMI. "We will be able to cover some or all pre-existing medical conditions. What we will not cover is those conditions that are current or active at joining. However, we will be able to cover re-occurences of past illnesses as well as new problems that relate to conditions already suffered."
"This means if the policyholder had high blood pressure we would cover them for heart disease or stroke. Traditional PMI would not do that."
Customers applying for PPP's Classic and Key plans will be able to access individual underwriting and the policies will be marketed as 'Unique Classic' and 'Unique Key'.
Jones adds: "In some cases people may be able to pay premiums that are 40% lower."
The pilot is expected to run for between four and six months. "We need to make sure the process is robust and efficient," said Jones.
The plans are expected to attract a large audience - including younger healthy applicants and those with minor pre-existing conditions.
