Prudential UK is to launch into the private medical insurance (PMI) market with a new product design that it claims will ‘shake up' the UK market.
Although details of the new offering will not be available until 2005, PruHealth said premiums would be linked to evidence of policyholders leading a healthier lifestyle. Partnership deals with fitness networks Cannons and Holmes Place have been confirmed, suggesting regular gym goers will be rewarded for their efforts within the new plan.
“Policyholders will be able to reduce the cost of their health insurance in a variety of ways from giving up smoking to taking more exercise, or managing existing conditions,” said Catherine McGrath, chief executive of PruHealth. McGrath said the new offering would bring a progressive and enlightened approach to private healthcare. Describing the current UK market as stagnant, she added: “There’s little to distinguish the main players. Virtually all raise annual premiums well in excess of inflation without any regard for people who are trying to look after themselves. The current system revolves around paying for sickness, not promoting health and wellbeing. We are going to change that.”
Partnerships with sporting events registration service provider Active Europe and alternative therapy provider The Diagnostic Clinic have also been announced. It is believed such links will be used to help reward policyholders for keeping their health in check.
The insurer claims that policyholders who claim on their plan can help avoid premium rises if they look after their health. Rewards will also be given for managing any non-chronic pre-existing conditions effectively.
Stephen Walker, chairman of the Association of Medical Insurance Intermediaries welcomed PruHealth’s intentions to shake up the market.
“Another provider entering the private medical insurance market can only mean good things for the industry. PruHealth is very serious about shaking up the market and while the finer details of its plan have not been finalised, having a player with such a high media profile launching into the industry is fantastic. If PruHealth makes current market players sit up and take more heed of ways in which to move the industry forward, then that bodes well for everyone involved.”
