PMI
AXA PPP Healthcare has revealed it is to launch a new healthcare product to fill the gap between what is currently offered by critical illness cover and private medical insurance (PMI).
Speaking at the COVER Protection Forum, Tim Dunn, intermediary account manager at AXA PPP Healthcare, told delegates the details of the plan, which it intends to release in Q1 2005. It hopes the product will provide access to an untapped part of the UK market.
The product provides cover for critical lifestage events. It will offer protection for the four most life threatening illnesses and accidents including cancer, heart conditions, stroke and road traffic accidents.
Clients will be able to claim up to £250,000 of eligible healthcare benefits and cover will be provided from diagnosis up until the completion of treatment.
The benefits will be available for up to two years following the diagnosis of one of the three diseases, or one year following a road traffic accident.
The latter will not cause the policy to terminate. Commission, which will be an initial 60%, will be payable on indemnity terms over an earning period of two years.
Announcing the launch, Dunn said: "The product will be both simpler than critical illness and cheaper than private medical insurance. To date, demand for medical insurance has not been matched by affordability. We hope this product will help to penetrate the 88% of consumers we have so far been unable to reach."
Dunn added that he believes the new innovation could be used as a tool to revisit lost PMI sales. Demands for developments in the PMI sector were also stressed by Tim Cuthell, corporate support services manager at AXA PPP Healthcare. He told intermediaries that innovation is the only way forward if the PMI market is going to change.
