Insurer April UK, part of French company April Group, has arranged a deal with Axa PPP to offer continuation of cover after pulling the plug on its private medical insurance provision.
The deal with Axa PPP healthcare is to offer April UK’s individual and small- to mid-sized enterprise (SME) customers continuation of their PMI cover with no personal additional medical exclusions.
This follows April UK's recent announcement that it has decided to withdraw from the UK PMI market.
The arrangement means no client will be left without an offer of continuing their cover at renewal.
Intermediaries can renegotiate their individual and group clients’ cover mid-term with Axa PPP healthcare, although commission clawback will be applied by April UK, where applicable.
According to a statement from April UK, the insurer has also set up a broker hotline to answer calls relating to the transfer of business. The number is 0800 073 5330.
In parallel, Axa PPP Healthcare will be setting up a helpline to assist with continuation of cover enquiries.
The news does not affect April International (the group’s IPMI specialist subsidiary) or Medibroker (a direct broker in international health insurance), which are separate entities operating in different markets within the April Group.
In July, April UK announced its withdrawal from the UK health insurance market, meaning it can no longer accept new applications for its PMI plans.
These include inSpire and Regional plus, and affect both individual consumer and small- to medium-sized business.
Any applications received from 16 July onwards are being sent back to the broker or individual.
In a statement, April UK said competitive pricing was making it difficult to provide PMI in this market.
The statement said: "Naturally we are disappointed to make this announcement. The nature of the market has made it difficult for a ‘new’ provider like us to develop a sustainable portfolio and negotiate competitive claims costs with private hospital operators and consultants that are in-line with other insurers in the market."
One retired adviser, who is a customer of April UK, wrote to FTAdviser and expressed some "concern" about what this would mean for his ongoing cover, saying: "My wife and I, along with many others, are insured with April UK."
In a statement, the company confirmed: "Customers with an existing April UK PMI plan will continue to receive cover until their next renewal date. However at renewal, we will no longer be able to issue renewal terms.
"Customers will be notified of this 30 days before their renewal date and invited to contact their broker to seek alternative cover."
A spokesman has confirmed that the continuous cover provision available with Axa PPP Healthcare should provide more clarity and certainty for any customers with concerns over ongoing PMI cover.
April UK has also confirmed that its existing lines - life assurance, income protection, critical illness and other plans - will remain open for business. Only the PMI is affected.
simoney.kyriakou@ft.com
