Private medical providers efforts to lure new customers fall flat

A new report from Datamonitor reveals that the introduction of new private medical policies in 2005 and 2006 has failed to lure a sizeable audience, and the market for personal private medical insurance went into decline in 2005.

The report said that rising costs of treatment are being blamed for the decline in the number of people taking out personal cover.

James Dieppe, Financial Services Analyst at Datamonitor and author of the report, said that like the NHS, insurers are suffering from the ill-effects of these high medical costs and they need to reassure consumers that they are getting good value.