Simplyhealth has taken over National Friendly's PMI claims administration.
The three-year contract will see Simplyhealth take on 17,000 customers.
Ian Talbot, commercial director for National Friendly, said: "Simplyhealth's ability to deliver managed care services, enabling our customers to get the maximum value from their policies, was instrumental in our decision to appoint it as our sole PMI claims administrator for the next three years."
Simplyhealth has built a team of claims managers and nurses to handle the development.