Medical insurance prices deterring consumers

High premiums are responsible for UK customers abandoning medical insurance policies, according to a new report.

The research by Datamonitor shows that between 2001 and 2005, as premium’s rose by 6.5 per cent a year, the number of people who had an individual medical insurance policy dropped by a total of ten per cent.

James Dieppe, the author of the report told Reuters: "Like the NHS, insurers are suffering from the ill-effects of high medical costs

"Expense is still a major deterrent and insurers need to reassure consumers that they are getting good value."

With consumers seeking cheaper alternatives, the industry launched a host of new policies in 2006 but they have failed to catch the public’s interest.

Instead, the research shows that more people have opted to join corporate medical schemes through their employers, where premiums are lower.

It also seems that despite concerns over MRSA, people in the UK are generally more confident in the NHS than they have been.

According to Datamonitor the slide is set to continue with an average fall of three per cent a year until 2011.