Axa PPP has taken over all underwriting of Permanent Health Company's private medical insurance (PMI) and dental products.
The move is likely to increase fears among intermediaries regarding the range of insurers available for clients.
Following recent consolidations in the market many advisers had expressed their concerns at the shrinking provider space and dominance of a small number of providers.
Axa PPP were involved in a controversial underwriting agreement with the British Insurance Brokers Association (Biba) and Jelf Group that produced vocal protests from many brokers and was eventually amended.
The new underwriting conditions will take effect from 1 January 2012 and will apply to all policies renewing on or after this date.
In a statement posted on its website, The Permanent Health Company (PHC) said it believed ‘the change of underwriter is in the best interests of all our clients and will allow us to continue to offer attractive terms and innovative products in the future'.
It added that all contacts for quotations, policy administration and claims assessment would continue to be with PHC and pledged that it would continue to maintain its customer service levels.
Neither PHC or Axa PPP were immediately available for comment.
