Lindsey Joseph, Association of Medical Insurance Intermediaries
I believe the question that is more appropriate is: Why won’t the holding insurers release claims information?! Historically SME clients were on a community rated proposition, therefore claims were not relevant. Increasingly, the insurers have moved on to a claims influenced proposition where the claims influence element is gaining greater and greater emphasis year on year. The majority of insurers now use claims influence to a greater or lesser degree depending on which provider you are with, which means renewal terms can be subject to excessive increases by virtue of adverse claims.
The only insurer at present that provides a detailed account of the claims information is Groupama. Others provide little to no information, which is staggering given that renewal terms are subject to substantial loadings due to poor claims experience.
The lack of transparency within our market sector is to our detriment. We need to be seen as being open and transparent in our business dealings, and excessive increases need to be justified not hidden by refusing to disclose pertinent information.
Carmen Lowe, group client services director, CBG Group
No. Intermediaries are not failing clients if they do not demand a claims history from the holding insurer. PMI intermediaries provide clients with the best advice based on the information PMI insurers are willing to provide. Intermediaries do not seem to have the power to demand anything from insurers, particularly claims information.
It isn’t an issue of intermediaries ’not pushing insurers hard enough’, but simply that greater transparency is needed across the PMI industry to ensure insurers are pricing accurately. Non-disclosure of claims information means holding insurers have an advantage over their competitors, who, without a full history, cannot price appropriately.
Consequently, clients may not be able to take advantage of more affordable alternatives in the market place, due to the current insurer’s non-disclosure. Ultimately, this is out of the intermediaries’ hands.