Chartis (formerly AIG) has announced that it is to pull out of the UK private medical insurance market. Existing HealthChoice policyholders will be given notice that their policies will be cancelled at renewal and will therefore need to arrange alternative cover.

This is disappointing news that will present practical difficulties for some Chartis policyholders, especially those that are undergoing treatment or have treatment planned. Chartis members that can move to a new insurer with ongoing cover for pre-existing conditions should do so at the earliest opportunity, to avoid a scenario where a new medical condition arises before the renewal date, thus complicating a transfer.

This is a sobering reminder that private medical insurance policies are annual contracts, with no obligation for the insurer to offer renewal terms. Fortunately, this is a very rare occurrence, and should not dent consumer confidence in the UK health insurance market. Existing Chartis members should seek advice from a specialist PMI broker.