Insurance Age

Cash for treatment.

The PMI market is slow at present - sales are flat and cover is expensive. However, the hospital cash plan is a simpler and cheaper alternative with wide appeal for policyholders says Keith Sankey.

Private medical insurance is in the doldrums. Despite the product and
marketing initiatives of providers, the total number of people covered by
PMI in the UK has hardly increased at all during the 1990s. Various
reasons have been suggested for this state of stagnation.


Cover is expensive and premiums have been rising at a medical inflation
rate much higher than that of retail prices and earnings. The products, as
the Office of Fair Trading (OFT) has pointed out, are considered complex
and it is

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