New PMI guidelines will improve clarity for consumers

The ABI (Association of British Insurers) has published new guidance that updates the definitions of medical terms used in all Private Medical Insurance (PMI) policy documents and information, and introduces guidelines to explain PMI cover for cancer.

The revised definitions have been developed during a detailed consultation with the industry and other relevant groups, including the charity Cancerbackup. The definitions and guidance will help to ensure that PMI customers are able to understand what policies do and do not cover, and to compare the products of different companies more easily.

Nick Starling, the ABI’s Director of General Insurance and Health, said: “PMI provides valuable cover for around six million adults and children in the UK. It enables them to that they can get the treatment they need when and where they want it, and it also helps to free up NHS resources.

“The ABI has been working with member companies, and organisations such as Cancerbackup, to create clearer definitions of medical terms. And for the first time, companies will be required to provide a more detailed explanation of their cancer cover. This is because cancer is a complex disease that does not always fit into the standard categories of ‘acute’ or ‘chronic’ illnesses. We hope that the new definitions will improve people’s understanding of PMI and encourage more people to take it out.”

Joanne Rule, Chief Executive of Cancerbackup, said: “We welcome these important guidelines. They are a result of a long campaign by Cancerbackup and a strong industry response through the ABI.

“Common definitions will bring much needed clarity to people purchasing PMI and allow them to make better informed decisions about the kind of cover they want, and the treatments which would be covered if they were diagnosed with cancer.”