GP report fee decision in June

An agreement over a fixed industry fee for GP report payments should be approved on 13 June, when the Association of British Insurers (ABI) and the British Medical Association (BMA) meet, writes Adele Burton.

The fee for the reports, which are required by insurers for claims from policies such as critical illness, was previously set at £31 and reviewed on an annual basis. But following a breakdown in the agreement, doctors are now able to set their own fee, which is causing delays for insurers.

Mark Preston, underwriting manager at Scottish Equitable Protect, said it currently takes between 28 and 35 days for a report to be returned from the doctor to the insurer which usually includes a negotiation about the fee. However, 12 months ago it was only taking between 18 and 20 days.

He said: 'Insurance companies are issuing GP reports, but GPs are returning them with varying amounts, which the insurers have to pay. GPs have asked for an increase in fees based on the time it takes them to complete the reports. But at the moment no-one can agree on a fee and it is causing delays.'

Nick Kirwan, head of product development at Scottish Provident, said: 'It is chaotic as doctors are doing their own thing, with some wanting money in advance which is slowing everything down.'

An increase in costs for the GP reports is likely to be around £45 and will have to be met by the insurers. However, Preston believes this should not affect consumers.

'The main issue facing insurers is that if costs increase, companies may have to look at other ways of getting in evidence. An increase in premiums would be the last resort and it probably won't go down that route,' he said.

Kirwan added: 'All these things get passed to the customer, but we need an agreement as the reports are essential for policies such as income protection and critical illness. The costs are unlikely to be big enough to have a direct impact, however it does depend on the agreement and whether they accept what has been offered.'