Your insurer calculates your premium at renewal and there are a number of factors that are taken into consideration. We want you to be able to understand the reasons that your Health Insurance Premium goes up every year.

Age will affect your health insurance premium

Health Insurance premiums increase with age as statistically you are more likely to need medical treatment as you get older. As you age, you become a higher risk because you are more susceptible to illness or disease. It is therefore likely that you will have an increased reliance on healthcare services, whether privately or on the NHS. Insurance companies take this into consideration when calculating your premium at renewal.

Many insurers have annual age band increments, meaning your premiums will rise each year to take this into account.

Medical inflation forms a part of the renewal premium

Medical Inflation is another factor that is included. This is mainly due to new medical advancements and drugs constantly being introduced. This in turn improves the healthcare you have access to. This type of inflation is not the same as the standard rate of inflation. As technology improves it means that people have a better chance at surviving serious diagnoses such as heart disease and cancer. There is a cost attached to advancing research, medical equipment and medication. These costs will affect the cost of your health insurance premium.

Claims made on your current policy will make a difference to your health insurance premium

If you have claimed during the policy year and your policy incorporates a no-claims discount, your no claims discount will be affected . As a result you will see an increase in your health insurance premium at renewal. Some insurers operate bands, whereby the percentage increase due to claims will be subject to the amount the insurer has had to pay. This can also determine the number of levels you drop on the insurers no claims discount scale.

A number of insurers offer policyholders the chance to protect their no-claims discount. This means that even if you makes a claim your no-claims discount will not be affected for that year, however this doesn’t mean your premium will not increase at renewal it just means that the claims element will remain unchanged. Generally you would expect to see a higher premium if you opt to protect your no claims discount.

Change in personal circumstances

A change in your personal circumstances can also have an effect on your premium at renewal. If you change your address, add family members to your cover or remove them, this will make a difference to your premium. A change of address does not always cause an increase in premium however, if you were to move from Cornwall to Central London this area relocation is likely to make a difference to the premium you pay.

At SMP Healthcare, we are on hand to review your Private Medical Insurance policy at renewal. We can help you to see what the other insurers are able to offer you. If you compare health insurance policies at your renewal you may find you will be able to control the costs of your policy.

Even if you have claimed during the policy year, we will advise whether or not a transfer to an alternative insurer at renewal is possible.

Simply contact us on 01245 929 129 or email enquires@smphealthcare.com if you would like to find out more.