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Healthcare industry divided on best way to serve 'jittery' corporates Health Insurance and Protection Magazine

17.06.10

CORPORATE CONCERN

A major concern expressed by several speakers at the annual acute healthcare event, was the risk of further downturn in the corporate market, which represents 70% of the entire private medical insurance (PMI) market in the UK.

“Corporates are starting to get jittery about the cost of their benefits,” warned Nick Groom, distribution director at insurer AXA PPP Healthcare. “If we do not control costs we will see less people insured at a corporate level.”

He highlighted an increased use of procurement to purchase PMI as a “worrying trend”, having recently taken part in an “ebid” for one corporate contract. This shift has also been noted by Guy Blomfield, group strategy and commercial director at General Healthcare Group, the parent company of BMI Healthcare, the largest private hospital group in the UK. He suggested that these buyers would look to “bundle” corporate healthcare services such as PMI and occupational health or reduce the number of lives covered.

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