Time to dispel another misconception about private medical insurance: that it’s not possible to move to a new insurer if you have pre-existing conditions. I’m prompted to address this issue having read the following statement in an otherwise sound article from the Daily Telegraph:

If you haven’t made a claim it might be worth shopping around for a better deal. But it’s a different story if you have had anything wrong with you since the policy started – such conditions will be “pre-existing” as far as the new insurer is concerned and will be excluded from cover.

There’s some truth in this, but it’s only half the story. As insurers vie for each other’s business in an increasingly competitive market, most are willing to take on clients with pre-existing conditions, provided the applicant meets certain criteria. This is generally known as a ‘switch’ or a ‘CPME transfer’. CPME stands for Continued Personal Medical Exclusions, and indicates that any existing medical exclusions will continue to apply, but that no further exclusions will be specified.

Switch terms vary greatly between insurers, but most require that the applicant has not seen a consultant in the last twelve months (privately or on the NHS) and is not awaiting any treatment or investigations at the time of enrolment. Some insurers go further still and bar applicants with a history of serious illness, such as heart, stroke and cancer conditions.

Switch candidates should give due consideration to the transfer terms, because a false declaration could invalidate the policy. Very often, a client’s medical circumstances will preclude a switch, and their interests will be best served by remaining with their current insurer. Great care needs to be taken when moving to a new insurer on a switch basis, lest a cheaper policy becomes a worthless policy.