PMI
Impressive growth in the private medical insurance (PMI) market has been reported by the latest figures from the Association of British Insurers (ABI).
Despite a decline in individual sales, the total number of PMI policies reached 3,713,000, with corporate sales seeing growth of 2.6 million. According to the ABI, this represents a one-third increase in group sales since 1997.
Last year's figures therefore support the continued trend over the last few years of a slow decline in individual sales, evened out by a steady increase in the number of group policies taken out, despite an economic downturn.
Richard Walsh, head of health at the ABI, said the group market had an important role to play in the delivery of healthcare in the UK, suggesting that the Government should reduce the cost of employers' contributions by providing tax breaks.
"By taking out health insurance for their staff, employers are contributing to better healthcare for the nation as a whole. In 2003, private medical insurance contributed well over £2 billion of care. Without this contribution there would be hundreds of thousands more people on NHS waiting lists and employee sickness absence would be worse. The Government should reinforce the contribution of employers to the health of the UK by reducing the tax burden," he said.
