The consumer association, Which?, has issued its latest report into private medical insurance, which I was asked to review prior to publication. The report is, I think, balanced and informative, and does not make the mistake of trying to offer advice. Instead, it provides a broad overview of the market and should help consumers to make an informed decision.

There are two aspects of the report that are particularly noteworthy. First, the comparison table is, by necessity, littered with so many caveats and qualifications that it illustrates just how difficult it can be to make a reliable comparison of PMI policies. Second, Which? surveyed nearly 3,000 of its members that have PMI and have ranked the eight largest providers for overall customer satisfaction.

The comparison table, below, aptly demonstrates why price comparison sites are not the ideal distribution channel for PMI. Aside from the obvious point that a client’s medical circumstances can sometimes determine the most appropriate recommendation, apparently subtle differences in cover can make a significant difference to the value of a policy.

What is not generally understood by consumers is that the PMI quote engines used by the main comparison sites are operated by brokers, like us, selling the same products at the same prices and earning the same commissions. The only advantage, then, is the convenience of buying online, and whilst some people prefer to buy this way, most would benefit from a discussion with an adviser.

The customer satisfaction survey should be of as much interest to brokers as it is to consumers. To the best of my knowledge, this is the first such survey and the results are more or less as I would have expected, with just a few exceptions. Top spot went to a resurgent Exeter Family Friendly, with CS Healthcare and WPA rounding out the top three. 

Brokers differ in the importance that they attach to insurers’ service standards. The primary focus will always be on price and the terms of the contract, but it is in the broker’s best interests to place clients with insurers that settle claims fairly and deal with administrative matters promptly—sometimes, the broker can only be as efficient as the client’s insurer.

Comparison table reproduced with kind permission of Which? Click to enlarge.