Interview: A simple future?

Simplyhealth is an interesting company, spanning as it does almost the entire product range in the health arena. These include corporate private medical insurance (PMI), the self-funded market, the dental market, cashplans and even independent living aids. 

Of course, the health sector is taking quite a bit of interest from IFAs at the moment. This is perhaps due to the RDR and the fact that it still has commission, but also because it is it is an interesting market in its own right, with a few sectors, such as corporate paid cashplans becoming increasingly popular with employers. 

However, if there is one issue bothering the sector at the moment it is medical inflation impacting on premiums. This is so serious that the likes of Bupa are actively considering whether the market is sustainable in its present form.

Not surprisingly, product design is being heavily influenced by medical inflation. Along these lines, Simplyhealth recently brought in a PMI product for the SME market. This product was a design fusion from the insurer's past.

A flexible offering

Mike Wagg, head of intermediary sales at Simplyhealth, explained: "The preferential product that was available under the Simplyhealth banner was launched back in 1994.  It was a package product and is still being sold by our intermediaries.

"There was also the Sante product, available through the healthcare arm of Groupama insurances [bought a year ago by Simplyhealth]. That was a menu-based offering, which has tended to be the way the market has moved and evolved over recent years."

The new offering, Simply Employee Health, launched in April, and is menu-based. However, Wagg is keen to point out that this is not solely a price control exercise.

"It is price control, but also flexibility; it is making sure that the benefits that are available within the product are suitable for the company's needs and for the members' needs. So, yes, price, but also having that flexibility and being able to adapt cover as appropriate."