The average private medical insurance (PMI) premium has surged by 37% since 1999, according to new research from PruHealth, the private medical insurer.
This compares with Retail Price Index (RPI) inflation of just 12% during the same period.
Shaun Matisonn, chief executive of PruHealth, has said in response that the huge increase in premiums is totally unsustainable and urgent action is needed if the recent downward trend in policyholder numbers is to be reversed.
Matisonn said: "The answer appears to be simple. 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? This approach reduces both the insurer's risk and the cost of cover at the same time, without affecting the quality."
