PMI
AXA PPP healthcare has launched a new private medical insurance (PMI) product, specifically designed for the over-55 market.
The offering, Retirement Essentials, is a restricted product, which only offers cover for consultations, diagnostic tests and treatment for heart conditions, joint replacements, eye conditions and inguinal hernia repairs - four of the most common conditions among the older population.
AXA PPP healthcare said its decision to create a limited product comes in a bid to contain cost, which tends to be the deterring factor when consumers are considering private healthcare. This is specifically true for the older population, as the cost of PMI increases with age.
Nye Jones, head of intermediary development at AXA PPP healthcare, said the product is particularly aimed at people who used to be part of a corporate PMI scheme but are now retiring.
"We are trying to aim at group leavers who would otherwise fall out of the market," he said.
Overall, Jones also hopes the product could help sustain the individual PMI market. "Retention is an issue in the individual private medical insurance sector, so we need to see an increased market penetration," he added.
Customers can switch to AXA PPP healthcare's new plan from any other scheme without having to go through another underwriting procedure. However, people over the age of 75 have to be underwritten.
According to the provider, the cover could be as much as 70% cheaper than a traditional comprehensive PMI plan. For example, a 65-year old woman living in Oxford would pay £46.49 per month for Retirement Essentials, while she would have to pay £121.47 per month for AXA PPP healthcare's Ideal (cover level two) plan.
