Trust in private medical insurance (PMI) among consumers has rebounded to last year’s levels due to an improvement in claims satisfaction, according to Fairer Finance.
However its research found contrasting dynamics between group and individual customers.
Trust is higher but down almost two percentage points since autumn 2024 among people with workplace PMI, while trust among customers who buy direct or through price comparison websites is starting to improve, narrowing the gap.
Overall trust in the industry has increased by 0.71 percentage points since the spring to reach 58.55% – just below the peak in autumn 2024 of 60%.
The improved trust scores have been attributed to rising claims satisfaction, which has increased by nearly three percentage points.
Fairer Finance said average claims satisfaction scores had risen by more than nine percentage points since autumn 2023.
James Daley, managing director of Fairer Finance, said: “After a brief pause in momentum, it’s encouraging to see consumers’ trust in PMI returning to growth.
“We’ve seen a number of providers in the sector embrace the Consumer Duty, improving the clarity of their communications and customer journeys – and this is now paying off in terms of trust levels as well.
“With the NHS still struggling to meet many people’s expectations, there’s clearly a valuable place for a private market for those that can afford it – and insurers are continuing to successfully capitalise on the opportunity,” he said.
Fairer Finance’s Trust in PMI Index is an ongoing study of 10,000 PMI customers. It has tracked sentiment in the industry since spring 2023.
