PMI premiums are set to soar by 7% this year due to increased medical care costs, according to analysts, Laing and Buisson.
ABI figures, due in May, are expected to show that insurers’ costs have risen above inflation again, with premium hikes to follow. This is despite the introduction of US-style managed care.
William Laing, director of Laing and Buisson, said: “Premium increases will vary depending on the customer’s age, occupation and policy. Some healthcare plans, which use a restricted hospital network, will only see small premium increase, others could see increases as high as 20%.”
However Laing said he does not expect these price increases to result in a drop in the number of people taking out medical insurance. He added: “With the record hospital waiting lists I would expect continued demand for PMI policies.”