The ABI is aiming for a compromise with the British Medical Association
over a planned big increase in medical report fees which could see
protection premiums rocket.
It has been in discussions with the BMA since May. The BMA wanted to more
than double the fee for a general practitioner's report from £30.10 to
£66 and more than triple the medical examination report fee to
£132 from £42.80.
Discussions are continuing but a compromise fee of around £46 for a
GP's report and around £87 for a medical examination report look set
to be agreed.
The new fees are likely to be phased in over two to three years.
ABI figures show between 800,000 and two million reports are requested
each year at a cost of £30m to the industry.
Life offices say they would have to raise premiums and rethink when to ask
for reports to cover the cost of the massive increase initially proposed.
They want to see the situation resolved quickly.
Scottish Equitable Protect head of underwriting Matt Rann says: “The
problem is that insurers do not know where they stand over how much they
have to pay and GPs are in exactly the same boat. ”
ABI spokeswoman Suzanne Moore says: “We are still in discussions with the
BMA and no final decision has been made.”