The ABI has published a guide for people considering buying private medical insurance (PMI).
It is designed to help potential customers understand the benefits of PMI, why people buy it and how it works, including the likelihood of above inflation price rises
This warning comes in the section addressing the question of premium increases.
The guide noted that: "Even with the wide range of PMI policies available, it is likely that whatever policy you choose your premiums will rise above the rate of general inflation."
It then cites the reasons for this including advances in diagnosis, new and more expensive drugs and surgical technologies.
Intermediaries are referenced as a source for consumers to buy PMI, alongside direct from insurers or an agent such as a bank or supermarket.
The booklet noted that advisers must explain to customers whether they are independent, advising on a range of insurers, or just a representative of one insurer.
And it warns that if a customer chooses to buy direct from an insurer or insurer's agent without receiving advice, it is the buyer's responsibility to choose a policy that is right for them.
It also broached the differences between full medical underwriting and moratorium underwriting, while other subjects covered include the typical path for a claim and common treatments covered and excluded.
The 16 page booklet is available to download or can be ordered from the ABI.
