I have been impressed by recent high excess/self-pay PMI schemes. Is it likely we will see more innovation in this direction?
High excess PMI plans and self-pay schemes have certainly increased in popularity over the past few years.
There are two ways of looking at high excess in particular, and it is these which will dictate the direction and pace of future innovation. On one hand, many people simply see high excess as a way of reducing premiums. But on the other, there is a growing band of people and their advisers who see high excess plans as a more strategic part of healthcare planning.
In the short term, switching to self-pay high excess schemes on the same terms from other PMI products will become easier, but over time, it is the elements directly relating to self-pay that will benefit most from innovation.
People who choose a self-pay PMI plan with a high excess do so expecting to pay for treatments above a certain level. It is essential they are aware of their commitment and a fixed excess is the best way. Up to this level, insurers should strive to offer better access to information on treatment choices just as we would for options on treatments that are being claimed for. Treatment costs are bound to increase over time and access to information is vital.
The next area where medical insurers, IFAs and insurance and financial services providers can work together is the development of savings, investment and funding vehicles for self-pay customers. Shared responsibility is a common theme among financially-astute consumers. As we see the Government shift towards a more integrated approach to healthcare, with private provision and funding, people will want products that help them take greater financial control over their own healthcare.
Mike Hall
