The UK health system is evolving towards a three-tier model as PMI providers increasingly offer guided network options to create more affordable policies, according to independent insurance broker Clarity Health Insurance.
In the past 12 months, 61% of new policies sold through the company included a guided network option, which restricts the list of consultants and hospitals available to policyholders.
Analysis of leading PMI providers conducted by the company suggests these policies can be as much as 53% cheaper than comprehensive options, while still providing access to a nationwide network. However, it warned that specialist training was required to help advisors navigate customers through the complexities.
Clarity Health Insurance managing director Kyle Godden said: ‘We are witnessing the evolution of the UK health market into a three-tier health system. With pressures on the NHS, there is a rising demand for private healthcare from a broader audience. Insurers have responded by offering more restricted products to lower costs and attract newer customer demographics.’
Godden added that while guided network policies are popular, there is significant variation in quality between insurers. ‘The number of consultants in a network can vary from 4,000 to 19,500, and some networks are more geographically restricted. Additionally, insurers are not always required to inform customers about changes or restrictions to their networks, even if these occur mid-term,’ he added.
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