Private medical insurance (PMI) providers have been urged to up their game in ensuring customers can actually understand their products, by consumer group Fairer Finance.
Elements such as no claims discounts (NCDs) were among those highlighted as being potentially confusing for average consumers.
Tim Hogg, director of Fairer Finance, told Health & Protection for our final PMI analysis of the year that while claims satisfaction had improved consumer trust, happiness and perceived value-for-money remain stubbornly flat compared to a year ago.
But Hogg also said one of the biggest challenges facing PMI providers was making their products genuinely understandable.
He cited the example of customers being able to predict exactly how a claim will affect their premium next year.
“No claims discount mechanisms might be transparent, but they’re often too complex for customers to navigate,” Hogg continued.
“When one in three people suffer from maths anxiety, and one in two only have the numeracy expected of a primary school child, we need to ensure pricing mechanisms are simple,” he added.