Private medical insurers should explore using loaded premiums to help cover more potential customers with pre-existing conditions.
Speaking at Health & Protection‘s second annual Health Summit, Wayne Pontin, non-executive chairman at financial adviser Infimo, (pictured) urged insurers to consider the approach to help support more potential clients.
Having highlighted the typical methods of used by health insurers of full medical underwriting, moratorium and medical history disregard, all of which exclude risk for policies, Pontin suggested alternatives could be fruitful.
Addressing delegates Pontin said: “Is there another form of underwriting?
“For example, with the life insurance model they don’t take the risk out, they load the premium for the risk.
“Could we consider that in consumer medical insurance; instead of eliminating the risk, let’s take the risk on – particularly with the problems that we’ve got with existing conditions.
“Let’s take the risk on and load the premiums. That’s some food for thought.”