PMI cover launched for firms with 250 workers
Aviva has introduced a private medical insurance contract for corporate clients with more than 250 employees.
The Corporate Excess contract aims to provide more choice and control on policy funding for Optimum PMI healthcare cover.
Companies can have the Corporate Excess set on the policy for approximately 80 per cent of the predicted claims fund and it will be held in trust by Aviva.
A claims reserve will be calculated on the remaining fund to be used to pay claims if the excess is used in full.
Nick Reynolds, head of PMI for Aviva UK Health, said: “A wider range of employers can benefit from the same cost efficiencies that our larger corporate healthcare customers enjoy.
“With economic challenges our corporate customers increasingly require flexibility in how their scheme is funded, as well as the level of cover offered.”
Companies will only pay insurance premium tax on the claims reserve, plus administration and insurance risk charges.
Companies that take out the Optimum PMI cover will have four different funding options – fully insured, cost plus, corporate excess or healthcare trust.
Brian Wellor, independent specialist broker for PMI Advisers, said he only worked with companies that have 250 employees and less.
He said: “I only work on the fringes of this sort of thing for larger companies and while bigger companies are looking to save money these days, all the smaller ones are too.
“The smaller companies, with 50 employees or less, are in my opinion the ones that need better rates.”