"Being able to gain access to good quality healthcare as and when it is needed is now a key priority for many people."
Demand for private medical insurance (PMI) is on the rise with concerns over long NHS waiting lists and the ongoing threat of doctors’ and nurses’ strikes leading more people to seek out private healthcare options than ever before.
Research carried out by Smart Money People earlier this year predicted a 21% growth in the number of people taking out PMI cover over the course of 2024, up from 14% on the previous year.
Demand for cover was especially high among those aged 25 to 34-years-old, with a total of 23% of this demographic saying they planned to take out health insurance within the next 12 months.
Additional figures from the Nuffield Trust also show there has been a 30% increase in the number of people paying out of their own pocket for hospital care across the UK since the Covid pandemic.
Longer waiting times for routine appointments, diagnostic tests, and elective surgeries have all been cited as the main reasons driving this demand, with more people seeking swifter diagnosis and treatment to combat illness and injury than ever before.
This uptick in growth also shows many consumers are no longer willing to wait months, or even years, to access treatment. Therefore, being able to gain access to good quality healthcare as and when it is needed is now a key priority for many people.
This presents advisers with a real opportunity to explore the PMI options available to their clients and ensure they do not miss out on any potential sales opportunities by taking a look at their current business models and seeking ways to increase their revenue stream.
PMI has always been a fairly lucrative area of the insurance market, yet it has also often been wrongly perceived as an elitist, expensive and complex product by those unfamiliar with the sector. However, the growing number of people choosing to take out cover or self-fund their healthcare shows this attitude to PMI is slowly changing.
Similarly, there has also been uptick in the number of mortgage advisers and firms approaching The Right Mortgage and Protection Network (TRM) to seek authorisation or increase the amount of business they are doing in the PMI space. This is also very encouraging and clearly demonstrates a growing demand and appetite for PMI among consumers and advisers alike.
For those advisers looking to expand their advice model to incorporate PMI products to their clients, knowing where to start may well be the first challenge to overcome, which is why TRM offers a supervision and development programme for any adviser interested in selling PMI.
The aim of the programme is to provide mortgage and protection or protection-only advisers with the relevant knowledge and training they need to ensure competency to advise their clients on PMI.
The process can take between six to 12 months and includes one-to-one training sessions on the PMI framework and advice and recommendation process. This helps advisers to improve their knowledge, allow them to build another income stream into their business and add another product to their advice toolbox.
Having the support of a network also means any training and compliance requirements are covered as standard, which can provide peace of mind for those advisers starting out on their PMI journey. It will also ensure advisers are kept informed of any market changes, including provider and regulatory updates.
Tapping into the opportunities offered by the PMI sector can open up enormous growth potential for advisers, both in terms of client base and revenue. The challenges in the NHS are unlikely to disappear any time soon, and with more consumers making healthcare a priority, now might be the right time for advisers to think outside the box and explore the potential available in the PMI market.
