Aviva introduced a Covid-19 pledge in 2020 to ensure that any difference between expected claims costs and actual claims costs for the period of claims monitored would be passed back to customers. Some £81mn was returned to eligible customers last year.
Sawyer adds that insurers have made good use of their purchasing power to keep premiums down for members in most cases.
But he cautions: “As people claim, this will change and inflation within the economy will surely also have an impact, but brokers are incredibly adept at helping clients move their cover from one insurer to another while maintaining current benefits, which will also help to keep costs down.
“Based on our research, those currently insured save an average of 24 per cent – a whopping £463 – by switching from one provider to another.”
What does high-quality PMI look like?
Our expert commentators said the following aspects help separate the wheat from the chaff on PMI offerings:
- speed of access to good-quality clinicians
- quick and efficient approval/claims process
- quality customer service (including the ability to give reassurance and care at a time when someone is likely to be vulnerable)
- added value solutions (particularly virtual GP and the ability to get direct referrals)
- extent of cover (including extensive cancer cover)
- choice of hospitals
- underwriting type
However, one or two individuals also made clear that the things that make a PMI product “high quality” will vary, according to who the customer is and what their priorities are.
Standout changes in the past 12 months
A number of our experts highlighted the guided hospital option as representing one of the biggest changes in buying and selling habits. In particular, the fact that it has become the default position for clients and insurers.
“This is where the provider has a preferred network of hospitals and consultants and can offer clients cheaper options as they have a specific deal in place,” explains Jones. “I think it’s a strong concept and gives clients the opportunity to reduce premiums, but to still access their preferred hospital if it falls within the guided option.”
Sawyer agrees, adding that guided options have “driven fierce competition within the industry, as well as helped make the best use of the doctors available”.
He says that another big shift is only just starting: namely specialist medical insurance for parents to cover their children. “This has always been a niche within a niche, but is now becoming a serious area of growth for those who want to protect their children, even if they cannot afford to cover themselves.”
Wright thinks the biggest changes are around how healthcare is delivered and how customers interact with insurers, rather than in the PMI product itself.
He says that lockdowns and other restrictions accelerated the adoption of digital enablement, transforming the way people access healthcare. For example, remote therapy sessions, virtual consultations and numerous apps to help with wellbeing and treatment.
