Some large corporate clients are seeing PMI premium renewal increases of more than 60%, Health & Protection‘s second annual Health Summit has heard.
Speaking at the Summit, Brett Hill, head of health and protection at Broadstone, told delegates while it was early days this year, SMEs were seeing average renewal increases of around 25% to 30%.
“Obviously we’re in negotiation but that’s the starting point,” Hill continued.
“With corporates some are lucky. We’ve seen a couple of cases over January and April where clients are being asked to find increases in their claims fund of 60% plus which is difficult for any employer to find.”
Sunny Solanki, director of UsayCompare, which works in the individual sector, revealed the firm had seen a steady increase in premiums year-on-year since the pandemic.
But he was pleasantly surprised this had not affected renewals yet.
“Prior to the pandemic you were looking at around £1,500 a year for a private healthcare policy rising maybe by a couple of hundred pounds up until the current point,” Solanki said.
“If you pair that up to the cost of living and you would think that people would start to look at what they’re doing and are they going to go down the cash plan, route but the retention of private healthcare has been really good.”
Rachel Western, principal at Aon, said premium increases tended to vary.
“A lot of that is dependent on the historic structure of the scheme, the benefits that they’re providing so there are lots of variations in the corporate market,” she added.
“It’s probably a bit more static in the SME market.”