PMI
Offering people cash incentives to improve their health could reduce the number of medical insurance claims by up to two thirds, according to new research.
The research, carried out by PruHealth, examined the number of claims made by members of its Vitality Wellness programme in South Africa. It showed that policyholders over the age of 55 made just one third of the in-hospital claims of non-incentivised policyholders.
It also revealed that members of the scheme, which was launched by PruHealth's joint partner, Discovery, were less likely to spend on chronic medication, with those in the 55-65 age group spending 41% less than non-members.
Shaun Matisonn, chief executive at PruHealth, believes this result may soon be seen in the UK. "It is still very early days for the private medical insurance product we launched in the UK. What we have discovered is that interest from people who traditionally do not consider private medical insurance until later in life is kicking in now, which is a really positive sign for the sector," he said.
Commenting, Susie Colley, principal of West Country Health Care, said while she thinks offering a product that could prevent people from becoming ill is a good thing, she is not convinced consumers will opt for it. "Most people will go for the cheapest option, and not the one that may help keep them fit," she said.
