Fearing they will be unable to afford rising premiums, many subscribers seek treatment while they are still insured. The latest figures show a downward trend. PMI market analysts Laing and Buisson 1 estimated in their annual publication 'Private Medical Insurance UK Market Report 2000' that PMI underwriting losses were 20 million in 1999 compared to 50 million in 1998. The Office of Fair Trading has called on insurers to give consumers a clear explanation of the factors affecting premium increases. Increases are typically higher than inflation because there have been more medical advances in the last 50 years than in the previous 2000.
Every new treatment generates more bills.
Some private health insurers have responded to concerns about rising premiums by launching fixed price cover. A customer taking out a policy today will know exactly how much his policy will cost in five or 10 years time. This marks a major innovation. Getting advice The Office of Fair Trading has attacked insurers for not explaining PMI policies in plain and intelligible language. The small print of many policies is complex and confusing.