17th December 2019

Aston Lark highlights the difference in a company’s Private Medical cover

By Dan Frankland
New Business Account Handler
Private Medical Insurance cover

Aston Lark Employee Benefits demonstrates the value a broker can add by highlighting the difference in a company’s Private Medical cover.


The context:

An existing Commercial client had their Group Income Protection and Group Life schemes placed through another broker with whom they were not happy due to service issues. We offered a review of their set-up of both their group schemes and subsequently, their Private Medical Insurance (PMI).

Our solution:

We were able to offer a lower premium on their Group Income Protection and Group Life Assurance schemes while maintaining comparable cover benefits, and were successfully appointed as the company's new insurance broker.

As PMI insurers offer the same premiums to all brokers, we wanted to demonstrate the value we add as a broker through our service. We spoke about the current underwriting method with the company's Group Secretary and realised there was a gap in their cover.

The Group Secretary unknowingly believed that any new joiners to the scheme were underwritten on a Medical History Disregarded (MHD) basis, but through our scheme analysis we found it was on a Moratorium basis. The potential difference between MHD and Moratorium is vast, which could lead to members believing they are covered for any pre-existing medical condition (MHD), when in fact, on a Moratorium basis, they would not be covered for existing medical conditions for a period of two years after joining the scheme.

After pointing out this difference in cover, we were asked to obtain terms on an MHD basis. The difference in premium was only 17% higher for the far more comprehensive cover. 


Our attention to detail and thorough analysis of their benefits led to the company switching their underwriting to MHD and to appoint us as their sole broker, consolidating their Employee Benefits and Commercial insurance cover. The client was extremely satisfied with this outcome.


To find out how your company might benefit from a similar review, call the Aston Lark Employee Benefits team on 0207 543 2833 or email [email protected]


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