BCWA: Britons need educating on benefits of PMI

by Gill Montia

Story link: BCWA: Britons need educating on benefits of PMI

Health insurance provider, BCWA, has concluded that the insurance industry is failing to provide people with clear information about the benefits of private medical insurance (PMI).

Recent research by the firm found that 83% of people surveyed could see themselves using savings (44%) or borrowing money (39%) to pay for one-off private medical treatment, rather than take out a PMI policy.

Of those who would borrow money, 21% would approach family and friends and 18% said they would borrow from a bank or building society.

In addition, 22% of those questioned said they would use their savings or borrow money to pay for private treatment overseas.

However, many people in this group are likely to overlook some of the costs involved, such as travel, accommodation and food.

Respondents to the survey said they would expect to pay over £8,000 for a hip replacement and in excess of £9,500 for a knee replacement and according to BCWA, they could therefore end up saving money by taking out a PMI policy because in the UK, the average annual cost of cover that would include such treatments is £836.

BCWA sales and marketing director, Jack Briggs, comments that consumers are no more aware of the cost of PMI than two years ago, when the firm undertook similar research.

He believes that education is the key and that the full extent of healthcare options available need to be promoted by insurers and brokers, adding that many insurers provide active support for intermediaries wishing to engage in the PMI market.