AIG launches to market

AIG will be launching a private medical insurance (PMI) product through the IFA market in September. HealthChoice, from AIG Direct, AIG's consumer distribution unit, is currently trialling with IFAs Premier Choice and Jelf. All parties are currently fine tuning the product's pricing.

HealthChoice, which is designed for small firms and individuals, is to pay for private surgery, priced at BMI Healthcare rates, but will pay out the same sum if the patient decides to remain with the NHS, or to go with another health care provider.

The product covers only diagnosis, surgery and post operative care. Lesley Jamieson, product development manager, accident and health, at AIG, said: "The NHS has improved over the last 10 years and it may be worth using it in some cases. We do not see it as our competition; that would be short sighted. We need to select how PMI can complement the NHS."

Those who wish to switch from another product can do so on existing underwriting terms, including existing medical exclusions or waiting period. The product has no excess and no no-claims discount. Jamieson, said: "These do not sit well with health care. It is counter intuitive to encourage the sick not to claim."

David Newley, head of marketing at AIG Direct said the product had no ambitions for the bulk market as HeallthChoice was not designed to rate on claims. However, he added: "AIG is aiming at 2% of this market within two to three years. It is a tough market and companies are playing with premiums. We will aim to be as transparent as possible and to have no hidden costs."

HealthChoice will not be sold under the AIG banner but solely as HealthChoice. AIG UK is regulated in the UK as a different entity to its US parent.