Health insurance rises are treble the rate of inflation

Wednesday, October 12, 2005

Health insurance premiums have rocketed at a rate equivalent to three times inflation over the past six years.

This shocking statistic has been brought to light by research carried out by PruHealth, the medical insurance branch of Prudential.

The information gathered reveals that whilst the Retail Price Index (RPI) rose by 12 per cent since 1999, private health insurance premiums rose by a massive 37 per cent over the same period.

PruHealth claim to be able to bring premiums down and is warning other insurers to follow suit and listen to customer demands.

"Intermediaries and consumers have been calling for innovation and for an end to spiralling premiums coupled with reductions in the quality of cover," said Shaun Matisonn PruHealth's chief executive.

"People who make more effort to look after their health make fewer claims. So, why not give policyholders incentives to manage their health more effectively and then reward them with lower premiums when they do?"

In related news, it is expected that the NHS will increase private treatment spending to £1 billion over the next few years with the aim of reducing waiting times for its patients.