Exeter Family Friendly is cutting premiums on its Health Cover for Me private medical insurance (PMI) plan by up to 12.5%.
The premium reductions will vary by age and the insurer says the move signals its intentions to be a serious player in the PMI market.
Mike O'Brien, head of intermediary sales at Exeter Family Friendly, explained the decision was made in response to demands from IFAs.
"What they have been telling us is that, in the current financial climate, people are being forced to tighten their belts and increasingly looking for more affordable PMI," he said.
"As a business, we are committed to intermediaries and listening to their feedback is a key aspect of what we do.
"As a result, we're delighted to "put our money where our mouth is," he added.
