Medical insurers hike charges

Medical insurers hike charges

Private medical insurers have boosted the premiums they demand by 8 per cent over the last year because of a relentless rise in the number and size of claims. A review by the leading authority on health insurance, Laing & Buisson, shows that 6.8m people, or 11 per cent of the population, spent pounds 1,875m in premiums for private medical insurance. Claims account for over pounds 1,535m, or 82 per cent. Insurers, faced with contracting margins, anticipate inflation of premiums at least 3 per cent over the retail price index. They warn that premiums for the over-60s may jump by 30 per cent following the abolition of tax relief for this group in last July's Budget. The number of persons covered has risen by just 2 per cent since last year.