Health insurance sales held firm during 2003, says ABI

The number of health insurance policies in 2003 held firm despite difficult market conditions, said the ABI.

Figures from the ABI showed that the total number of PMI policies reached 3.7 million, boosted by modest growth in the sale of corporate subscriptions. Corporate health policies grew to 2.6 million during the year.

ABI head of health Richard Walsh said: “The 2003 figures confirm the pattern of slightly declining sales of personal policies, coupled with long-term growth in corporate sales.

“It is particularly impressive that total business remained stable even at a time of economic downturn. Anecdotal evidence suggests renewed corporate growth in the later period of 2003, and into 2004, following the upturn in key sectors such as financial services.

“By taking out health insurance for their staff, employers are contributing to better healthcare for the nation as a whole.

“In 2003, private medical insurance contributed well over £2bn of care. Without this contribution there would be hundreds of thousands more people on NHS waiting lists and employee sickness absence would be worse.

“Corporate sales have now risen by a third since 1997. However, the government should reinforce the contribution of employers to the health of the UK workforce by reducing the tax burden imposed on corporate PMI purchasers.”