National Friendly has withdrawn both the individual and corporate medical savings plans; Healthcare Deposit Account and Group Healthcare Deposit Account. This effectively exits the private medical insurance market.
The withdrawal is due to worries over rising claims in the market and concerns over capital reserves. Richard Sear of National Friendly says, "With claims rising as a whole across the private medical insurance market, we are no longer in a position where we can sustain this product at the existing levels of volume while maintaining value for our members. As a mutual, we firmly believe that our first responsibility is to protect our members. We have a number of new products already under development and these will be presented in due course over coming months.”
National Friendly is continuing to sell its corporate health cash cover, One Fund.
Private medical insurance news: 12 April 2011