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Product maters

Another variation of highexcess private

medical insurance has just been launched. PPP&#39s Healthy Outlook joins other attempts to retain business and to persuade self-payers that PMI is really a more attractive proposition than shelling out possibly very big sums on treatment.

Unlike other Insurers, which impose the excess per claim or per period, PPP has gone for a one-off excess of £5,000 a person. Premiums are low before the self-funded £5,000 in treatment is passed and double once the policy starts picking up the bills. Even then, policyholders have comprehensive cover at a saving of about 30 per cent on normal rates.

Policy documentation is commendably thorough and honest but it will take a dedicated purchaser to plough through its 40 pages. If they do, they will discover that, even if they are paying for treatment, they must follow PPP&#39s claims procedure and even use its hospital network.

PPP claims that £5,000 is not a huge amount for people to find nowadays and, of course, it could be made up of several smaller amounts rather than all paid at once. The one-off excess also caps the policyholder&#39s exposure unlike other current offers where the excess has to be paid on every eligible claim.

Will it work? Certainly, it is a worthwhile alternative to other high-excess policies and different enough to stand out from the others. The PPP name still carries some appeal for the public, who feel more comfortable with a name they know. Insurers must halt the exodus to self-pay and this will help. And intermediaries will gain and retain clients and income.


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