Cornhill is pulling out of the UK healthcare insurance market it announced yesterday.
Cornhill which has approximately 1 per cent of the UK private medical insurance market, made the unexpected decision after it said it could not see health insurance being profitable for a smaller player over the long term.
The insurer says it will stop writing new business from September 30.
Healthcare Matters principal George Connelly says: "I am very sad at the decision, it was unexpected even the staff have just been told."
Cornhill could have afforded to put premiums up and still remained competitive."