Providers of private medical insurance (PMI) came under attack from charity group CancerBACUP this m...
Providers of private medical insurance (PMI) came under attack from charity group CancerBACUP this month for misleading consumers about the nature and extent of cancer cover in its policies. This is bad news for a market struggling to grow its sales, particularly in the individual sector.
If PMI insurers cannot clearly explain the scope of cancer cover in their policies, then what hope does this hold for customers buying the product? Or for the intermediaries who sell it?
In an industry influenced by medical developments, the challenge is to create greater transparency and consistency with customers, perhaps by adopting a more customer-friendly definition of what cancer cover entails. Public awareness surrounding healthcare issues is increasing, providing an ideal opportunity for the PMI industry to shout about the services it offers.
With Financial Services Authority (FSA) regulation fast approaching, it is in everyone's best interests to ensure the communication channels are clear so that confusion and negativity towards the market does not prevail.
There are challenges ahead for advisers too. The little known Distance Marketing Directive from the Treasury, which comes into effect in October, could have implications further down the line.
The FSA may seem to be the main regulatory concern for the protection market at the moment, but with rules such as these appearing on the horizon, advisers are certainly being kept on their toes. Again, efficient working practices and clear channels of communication can steer them in the right direction.
Times are certainly changing. But the bigger challenge for all concerned is to use these changes to their advantage.
Angela Faherty, editor
