A recent survey, commissioned by private medical insurance provider, Simplyhealth, revealed that intermediaries are the preferred choice for businesses when purchasing private medical insurance.
Forty five per cent of businesses explained that they used an intermediary because of the knowledge and expertise they offered, whilst 26% of respondents said it was because it was easier than sourcing it themselves.
The survey, conducted by Employee Benefits Magazine, shows that 47% of businesses preferred to use an intermediary to source suitable private medical insurance schemes as part of their employee benefits package. This contrasts with the 14 per cent who purchased PMI schemes from a benefits consultant.
Michael Evans, commercial director, Simplyhealth said: “Intermediaries have been selling PMI schemes for a number of years now, yet most intermediaries view it as a small part of their income. The results of this survey however, clearly highlight the important role they play in providing businesses with employee benefits packages.
Demand for PMI has risen by 7 per cent in the last 12 months and intermediaries need to take another look at how they approach and sell PMI schemes, particularly at a time like this when trust in the NHS is rapidly declining.”
The survey also provides a useful insight into purchase criteria for intermediaries who are looking to increase their income through selling PMI schemes. When asked who makes the final decision to buy employee benefits, 51% of respondents said the managing director. This figure increased however to 71% for businesses with less than a hundred employees. Almost a third (31%) of employers with 10,000 staff said compensation and benefits managers drive the decisions.
