Standard Life Healthcare is entering the cost plus sector of the private medical insurance market to offer bigger companies with a sizeable and stable volume of claims an alternative to a fully insured scheme.
Under cost plus, a company agrees a claims' fund with the insurer which manages the scheme on behalf of the company. Insurance cover protects the company against claims that significantly exceed the claims' fund. Big firms can cap their liability at an agreed level.
SLHC will be offering three levels of cover which cap the client's liability at either 125 per cent, 133 per cent or 140 per cent of the claims fund. If a company's volume of claims goes above the chosen cap, SLHC picks up the difference. If the claims are lower, the difference is refunded.