PruHealth Cuts Gym Perks

PruHealth have a unique selling point - they offer gym membership as an incentive for people to buy their health insurance. This is appears to be a great bonus for their customers. However since its introduction in 2007 member benefits have been on the decrease and now this appealing incentive has been cut down again.

Initially customers who used the gym several times a week could receive free membership. Then last year gym membership could be offset with Vitality points. PruHealth awards points for a number of things including: living healthily and having health screening. The points can be traded for cheaper gym membership. Those with a Premium health insurance policy can still have free membership.

At the end of last year PruHealth wrote to policy holders to let them know that at their next health insurance renewal they would only be able to get a 25% discount on their gym membership.

Dave Priestly, PruHealth sales director said:

'If we were to keep the gym offer unchanged, premiums for all PruHealth members would go up by between 5% and 15% depending on the policy, the policyholder's personal circumstances and their level of engagement in our range of health and wellbeing activities. And this figure would again increase year on year to allow for age and medical inflation changes.'

Talking to The Guardian, Gerry Elias, who has a PruHealth private medical insurance policy said:

'I am exasperated that they are again moving the goalposts on gym membership fees and, in doing so, abandoning their fundamental marketing position – the more you visit the gym, the lower fees you will pay because you should be healthier and therefore a lesser claim risk.

'[The latest change] will mean an extra £540 a year for me, which isn't a paltry amount by any measure.'

The medical insurance market was hit hard by the downturn in the economy last year. Improvements in medical health care and the resultant increase in costs also creates a problem for health insurance companies who have to pass the load on by increasing premiums or offering less comprehensive medical insurance packages.