Ex-chair of AMII and founder of Health Care Plus, Bill Poynton knows PMI. Angela Faherty looks back on his career as he shares his views on the future of the market
'I have had two full 25-year careers,' says Bill Poynton, chairman of health insurance intermediary Health Care Plus. 'First in the airforce and then in insurance. Being in the airforce helped me to develop certain mental attitudes such as organisational and management skills that are easy to apply to civilian life. It is the way I have always worked,' he explains.
Poynton's practical approach to life and work has played a major role in his success as a businessman. His introduction to the health insurance market came in 1979 when he landed a job on BUPA's direct sales force in Oxford. It was here he met his current business partner Sue Smith. Disillusioned with BUPA's changing principles, the two decided to go it alone.
'At that time, the whole philosophy at BUPA had changed,' he says. 'It became very sales driven ' a bit like double glazing. There was a lot of focus on making a sale, so after a while we decided to become independent.'
Nine years later, Health Care Plus is still going strong. Poynton is proud of the achievement and says having clear objectives at the outset has helped the company grow.
'In establishing Health Care Plus, we set out with clear cut aims. We wanted to attract long-term clients and build upon this client base over a period of time. It wasn't just about turnover. I am pleased to say we still have clients who joined us in 1994,' he says.
Poynton also played a significant role in helping to establish the Association of Medical Insurance Intermediaries (AMII), although he admits it was no easy task. 'About five years after we set up Health Care Plus, regulation started to rear its ugly head,' he explains. 'At the time, we were invited along to a meeting by OHRA with 20 or so other intermediaries and encouraged to look at regulation and what it may mean for our industry. Admittedly, we were a little apathetic. It was the first time we had all met as a group to discuss things affecting us without having the likes of BUPA or Norwich Union there.'
Despite the initial apathy, it only took one further meeting for the intermediaries to decide they needed to act with one voice if they wished to influence any future regulatory regime. As a result, AMII was formed with 22 members, with Poynton heading the Association as chairman for the first 18 months.
'I helped get it off the ground. But with myself as chairman and Sue as secretary, our business was suffering. It was purely for that reason that I gave up the role,' he says. Although no longer chairman, Poynton remains a member of AMII and is proud to have been involved in its start-up. 'AMII has been the most dynamic development that has happened since I have been in this business,' he says.
Like many in the industry, however, Poynton is baffled by forthcoming regulation in 2005. He is concerned about the Financial Service Authority's (FSA) knowledge of the insurance market and strongly disagrees with some of the proposals put forth in CP160.
'We were quite happy working with the General Insurance Standards Council (GISC),' he says. 'I am not sure we will be as happy working with the FSA. Its limited knowledge of the general insurance market is evident from the way the first consultation paper was put together. I am not sure what it is looking for.'
Poynton hopes the FSA will fully consider the responses received regarding CP160. 'One of the main issues for us is about solvency requirements. As intermediaries, we do not handle any money, so there are no solvency requirements' he says. 'The GISC took the view that if we did not handle money, then we should not have to meet these conditions. We hope the FSA also adopts this attitude, but we are a bit worried,' he admits.
Poynton also strongly contests the FSA's proposal to categorise PMI as a high risk product. 'There is a misconception that once a person goes private, there is no going back, which is nonsense. If a person cannot be treated under their policy, there is always the NHS. All they have lost is a bit of speed, not the right to treatment. Where is the high risk?' he says.
'The plan to differentiate between private and non-private customers on the basis of a £1m turnover is also nonsense, it is simply easier for them to do it that way,' he continues. 'It is based on the assumption that a non-private company earning more than £1m has a body of knowledge about what they are buying, whereas a smaller company doesn't. Well, that is crap. In my experience, people who buy PMI know what they are buying. If they do not, that is what we are here for.
'We would prefer it if they took on the GISC's definition of commercial and private. It is working perfectly at the moment, so why mess around with it?'
Despite the odd bone of contention, Poynton is optimistic about the future. The market is growing, he says, and Health Care Plus has seen significant growth in both the individual and group business sectors in the last year. On a personal level, Poynton admits to toying with the idea of retirement.
'On the 23 June 2003 I am going to be 68 years old and have been encouraged to think about retirement,' he says, 'I always said I wanted to retire rich and happy. I'm not all that rich, but I am very happy.'
