The ongoing uncertainty in the UK economy brought about by rising interest rates and high inflation is being felt across every single corner of the mortgage market. Lenders are pulling and repricing mortgage products on a weekly, indeed daily basis, and many customers are adopting a wait and see approach when it comes to addressing their borrowing needs.
For advisers working in the mortgage market, this is proving to be a challenging time, with people more likely to delay their plans to move, extend and renovate as they wait for things to settle. The result of this approach is a somewhat hectic and uncertain mortgage market with enquiries high but sales plateauing as advisers try to manage the expectations of their clients against the backdrop of a new higher interest rate environment.
So, it’s perhaps not surprising that The Right Protection and Mortgage Network have seen a significant increase in the number of advisers and their firms either gaining authorisation or increasing their level of private medical insurance (PMI) business.
This uptick in growth is being driven by a challenging mortgage market, with many advisers looking at their business models, and seeing more private healthcare enquiries from their customers.
PMI has always been considered an elitist and expensive product by those unfamiliar with the policies. However, it would appear the tide is turning, as figures from the Private Healthcare Information Network shows record numbers of people are now choosing to either self-fund or pay for healthcare through insurance, amid growing frustration over NHS waiting lists.
In fact, the figures show that a total of 272,000 people used their own funds to cover the cost of having an operation or diagnostic procedure at a private hospital last year, while private hospitals treated a record 820,000 inpatients and day-case patients over the course of 2022, more than in any other year.
In addition, nearly half a million people took out a new PMI policy with Bupa, Aviva and Vitality in 2022, according to data released by the providers, showing consumer sentiment towards private health care and insurance is changing.
Driving this growth is the fact many people consider paying for treatment to be more cost-effective than waiting for the procedure to be done on the NHS, particularly if their illness or injury means they are unable to work and receive an income. The increase in the number of people opting to take out PMI cover is being driven by concerns over growing pressure on the NHS as well as its future viability, with these individuals opting to spread the cost of care over the long term by taking out a PMI policy.
This growth in the number of people either paying for healthcare or taking out PMI presents a real opportunity for advisers looking to maximise every business opportunity and ensure they make the most of every single client interaction.
Since the Covid pandemic, healthcare has been a key priority for many people and the importance of being able to gain access to good quality healthcare as and when it is needed is now front and centre in many people’s minds, particularly given the ongoing challenges facing the NHS and constant media speculation regarding funding, staff morale, and its ongoing future. People want reassurances, which is where PMI plays an important role.
As a result of the increased demand from advisers looking to maximise opportunities in this area of the insurance market, The Right Mortgage & Protection Network are expanding ourteam with new appointments in supervision and development specifically to handle all enquiries from advisers and oversee this area of the business.
The network’s dedicated PMI division is hosting a Private Medical Insurance Summit on 5thJuly, with a number of presentations, exhibitions and interactive displays available to those advisers interested in learning more about this area of the protection market.
Whatever might be happening in the mortgage market, it is always the right time for advisers to think outside the box and explore the options available to them in order to ensure they maximise all business opportunities. PMI is certainly one of those options and we’re here to support advisers either as they look to enter this space or make the most of their ongoing involvement.
Amy Wilson is Head of Insurance (GI and PMI) at The Right Mortgage and Protection Network
