Private medical insurance: 7m people take private care
7.1m Brits now covered by private medical insurance
Wednesday, 23 Apr 2008 00:01
Over seven million people in the UK now have private medical insurance (PMI).
Data from the Association of British Insurers (ABI) reveal 6,004,000 people were covered by personal or corporate PMI and 1,136,000 had cover from healthcare trust arrangements.
Over the last ten years the number of people with PMI has remained broadly stable but the size of claims have risen 66.4 per cent since 1996 to £2,501 million last year.
Premiums paid over the same period have grown 85 per cent from £1,752 million to £3,241 million.
"The demand for private healthcare has continued into this year, despite the current economic downturn," said Fergus Kee, managing director of Bupa UK Health Insurance.
"In the first three months of the year, individual PMI sales were up by 20 percent on the same period last year."
He added: "Our research shows that for 65 per cent of Britons, access to clean hospitals is the most important reason for taking out PMI.
"MRSA and general hospital hygiene are clearly top concerns for people. The other top reasons people gave include no waiting, speed of access to specialists and the ability to see the same consultant throughout their treatment."
With the growth of PMI, the ABI has now launched a guide to the insurance for consumers, covering what PMI covers, how to buy it, and choosing the right cover.
The guide also covers how PMI premiums can be reduced, by cutting level of benefits, reducing the range of hospitals and increasing the excess on the policy.
Other ways to reduce the cost of PMI include discounts if you exercise regularly or do not smoke, agreeing to have treatment on the NHS if it is available within six to 12 weeks or changing the way bills are paid.
Nick Starling, ABI director of general insurance and health, said: "It’s good news that the popularity of private medical insurance continues to grow.
"Health insurance gives people access to the treatment they need, when they need it, offers greater privacy and better facilities, and reduces pressure on the NHS.
"And it enables employees to get back to work after illness or injury much more quickly than they otherwise would."