Health Insurance Statistics

We all love statistics. They can provide an awful lot of information very succinctly. When it comes to medical insurance it is in consumers best interests to see who is providing what, what claims are being made and how many of them are being upheld.

There has been pressure on the health insurance industry to provide transparency, particularly since there has been much public criticism of companies who appeared to refuse cover that individuals believed they were entitled to.

Pressures for transparency can only be good for the consumer and have led to better regulation of the industry. The Association of British Insurers (ABI) has now published a non-disclosure code of conduct that states that consumers must be treated fairly in the processing of claims where non-disclosure is an issue. The ABI has 96% of British insurers within its membership.

Disclosure is a term in private health insurance which refers to the obligation of the buyer to reveal accurate details of their medical and lifestyle background. Non-disclosure, failure to disclose information, is taken very seriously by health cover providers who can invalidate a claim if their customers are found to have been withholding information.

Claims complaints are said to have declined in the last year due the non-disclosure guidelines which were developed in response to calls for more transparency from health insurance providers.

Insurers are said to have had mixed reaction to the idea of publishing statistics. Critical Illness cover statistics have been published for some time in the UK and not everyone from the industry is happy with the reaction they have received. Alison Turner-Holmes, head of marketing at Scottish Provident, said: ' I do believe that media focus on the percentage of declined claims has, if anything, been detrimental.'

However the sharing information with the general public can only be good for consumers and will enable them to make informed choices when they come to choosing a provider. It is expected that there will be increasing pressure on providers to 'reveal all' as the pressures of the current recession will mean that people will be looking for the cheapest health insurance that gives them the best cover. Companies which seem to payout on claims less than others will rightly be the subject of consumer scrutiny.