Another variation of highexcess private
medical insurance has just been launched. PPP's 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's 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's 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.