Record numbers of individuals were covered under private medical insurance (PMI) schemes at the end...
Record numbers of individuals were covered under private medical insurance (PMI) schemes at the end of 2001. Over 6.5 million people in Britain had PMI, either through work or privately, according to a report released by the Association of British Insurers (ABI).
A total of 6,534,180 people were covered at the end of 2001, compared with 6,466,091 in 2000. This was from a total of 3,603,216 policyholders, each paying an average of £686 a year per policy. The total industry premium was £2,473,447 at the end of 2001.
The report noted the popularity of PMI at work, cited by employees as the second most popular benefit after pensions. It also noted this record figure was reached in the year the NHS received a record injection of funds.
The biggest increase, up 8% on the previous year, was businesses buying PMI for their staff. The report states: 'With more employ-ers providing insurance for their staff and their families in order to recruit and retain high-quality people, this reduces the need for people to buy individual policies. This is why the number of individual subscribers has fallen over the last few years.'
But Derry Andrews, managing director of Clinicare, said cost is the real reason why the individual market has suffered in recent years: 'It is true to say if someone can get PMI through work then there is clearly an incentive to take it over an individual policy. The real problem with individual membership is that as it has become more expensive, premiums have risen and there is a market perception the individual premium is not affordable for the majority.'
According to the report, other pressures on PMI include an increase in the number of elderly people, the availability of more treatments, and medical technology, coupled with the impact of increasingly educated customers whose health expectations are becoming more demanding than ever.
Commenting on the report Richard Walsh, head of health insurance for the ABI, said: 'We are encouraged employers continue to recognise the value of providing PMI to their staff.'
