Laing and Buisson Report on PMI

Several newspapers have picked up on the recent annual market report on PMI from Laing and Buisson. These show some very interesting market trends.

FROM THE BMA NEWS JUNE 16 2001
PMI sales rose by 5.5% last year, the biggest rise in a decade. Company Plans rose by 7.4% whilst the number of individual PMI subscribers fell by 3.2%. There were 6.9 million UK PMI subscribers at the end of last year compared with 6.7 million 10 years ago.

FROM THE SUNDAY TIMES MONEY SECTION JUNE 3 2001
The cost of insurance cover went up by 18% last year, which is almost 10 times the rate of inflation. However, the amount paid out in claims during 2000 rose by 2.8%. Therefore the premium increase has served to boost insurers' profits and the average annual premium has now risen to £ 1,007, the first time it has broken the £ 1,000 barrier.

The latest increase is bigger than previous years with rises of 11% in 1999 and 3% in 1998.

In terms of payout from the insurers only 71% of the money taken in by premiums is paid out in claims compared with 79% in 1999 and 85% back in 1991.

This article went on to recommend that patients shop around for cover and noted the domination of the market by the two major insurers, BUPA Insurance and PPP, who make some of the highest charges for cover.

Mr. Roger Hymas, former Managing Director of BUPA Insurance said "Insurers are boosting profitability by increasing premiums to unprecedented levels, while cutting their costs by getting tougher on claims. It is older people who suffer because their premiums are much higher than the average £ 1,000"

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