Private medical insurance, also known as PMI, is a great way to protect your health and get faster access to treatment when you need it. But many are surprised to find that their premiums increase at renewal, even if they haven’t made a single claim. I’m often asked about this so here I’m going to break down the main reasons why your PMI might have gone up and what you can do about it. 

Remember, if you need any help when it comes to insurance – existing or new – MOORE Health & Protection Ltd is only a message away. There’s no fee payable when you get in touch, so you really have nothing to lose.

Medical inflation

Healthcare costs rise every year and not just because of general inflation but because medical drugs, technology and hospital fees continue to soar. This medical inflation can even outpace standard inflation and can be up to 10% annually. This means that even if you don’t use your policy, the cost for your insurer to provide the same level of cover naturally goes up.

Age-related increases

Most health insurance plans are age-related which means as you get older your premiums increase. This is because the older we get, the more likely we are to need medical treatment, and insurers price this risk at renewal. This is often one of the most common reasons for premium increases, especially for those who have had the same policy for several years.

Overall claims

Even if you personally haven’t claimed, insurers will assess how many people have – and they often spread the impact across their customer base. In short, this means you might be paying slightly more to offset a higher-than-expected number of claims from other policyholders. 

Policy changes 

Sometimes your insurer will improve your policy benefits like adding new digital health services or mental health support. And while valuable, it does mean an increase in the cost of your policy. This is why it’s important to check your renewal documents to see if any changes have been made to your plan.

Plan type 

Changes in your medical history could impact how your policy is priced in the future. Not to mention, claims from previous years can have a knock-on effect either through No Claims Discount (NCD) or insurers looking back over several years of loss ratios. After all, insurers will be looking to protect themselves against known risks. Similarly, if you’re part of a company or group scheme, the insurer may reassess the overall risk level for the group, which can again affect monthly premiums.

What you can do

You don’t have to accept a renewal increase. But you do need to do something about it like getting in touch with us at MOORE Health & Protection Ltd. We can:

• Review your cover to ensure you’re not paying for something you don’t need
• Compare quotes to see if switching could save you money
• Negotiate with your insurer
• Explore policy adjustments to bring costs down

Make sure you’re getting the best value for you

A renewal increase doesn’t necessarily mean your insurer is penalising you. It’s usually a result of market trends, medical inflation and natural age progression. However, that doesn’t mean you can’t act. And with expert advice, you can find PMI that is both effective and affordable. 

So, whether your policy has increased, or you just want to make sure you’ve covered all bases, get in touch today. We’ll help you understand your renewal and explore all your options.

MOORE Health & Protection Ltd is an Appointed Representative of The Right Mortgage Ltd, which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales no. 15020771. Registered Address: 17 Eyam Road, Hazel Grove, Stockport SK7 6HP.