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Association of Medical Insurance Intermediaries

Chairman’s comment - is the coalition good for health insurance?

Andrew Tripp, chairman, Association of Medical Insurance Intermediaries

July 2010 News

Two months into the new Conservative-Liberal Democrat coalition government, and we can already see that there are likely to be significant challenges over the next few years for all sectors of the economy, including healthcare.

At the time of writing this, the emergency budget had not taken place, but two other significant announcements have been made which will impact on the health insurance sector.

Firstly, the announcement on 17 June that the £450m project for a 660-bed “super-hospital” on Teeside has been scrapped is a sign that NHS capital projects will suffer as the new government copes with the massive financial deficit. For people living in Teeside this is a particular blow, as the project had already been in the pipeline for five years to replace out-dated hospital buildings at Stockton and Hartlepool. We all know that the demands on the health service are going to increase as the population ages, so it is difficult to see how “protecting front-line services” can be achieved by standing still and not investing in new facilities.

The current financial climate means that we, as a nation, have an opportunity to take a fresh look at how to finance our healthcare needs in the 21st century. It is my belief that there has to be a greater role for the independent health sector, and as an industry we need to stand-up and show that we can offer cost-effective solutions that give consumers the health protection they need at a price they can afford.

The second recent announcement that will impact on our industry is Chancellor George Osborne’s commitment to abolish the Financial Services Authority by 2012, and replace it with a new Consumer Protection and Markets Authority (CPMA) which will regulate the conduct of every authorised financial firm providing services to consumers. With others, AMII will lobby to ensure that this new body is more proactive and engages with the sector to develop clear and sensible rules that all firms can follow with ease, in a proportionate way that sensibly reflects the risk. And, of course, AMII will work with its members to help them adapt to the new rules.

However, the chancellor’s comment that the CPMA will be “tougher” shows that this new body will be no soft-option, and will continue to require advisers to be fully competent and professional in all that they do. The work that AMII has been doing with the CII to develop an examination in health insurance will, no doubt, be seen as both timely and necessary as this industry moves forward. A robust training regime with a strong commitment to continuous professional development will show that the health insurance sector has the professional skills and knowledge necessary to guide consumers and businesses in making the right choices about their healthcare provision.

My first year in PMI - Anna Davis, director, Fidelity Health Choice Ltd

When and how did you start working in the PMI market?

In 1978 I started in the sales office of Bupa as a development assistant. Then, in 1982 I headed their first telesales division but by 1989 decided it was time for a change and went to work for the middle man by joining Antony Gibbs Financial Management as their private medical insurance (PMI) administrator. In 1993 I was elevated to healthcare consultant with Antony Gibbs Benefit Consultants Ltd which was later to become part of the HSBC Group, specialising in SME and small corporate business. I took early retirement in May 2009 just before the company was sold to JLT Benefit Solutions. Prior to retirement, I had thought that if the opportunity arose, I would consider joining a local broker. I was subsequently introduced to Lionel Barnett, founder of Fidelity Health Choice and invited to join as a co-director creating Fidelity Health Choice Ltd. My main objective was to expand FHC’s portfolio of SME business.

Where do you see your career in PMI leading?

My aim at this moment in time is to expand the portfolio of business while giving honest and open advice and providing a personal service. I’m keen to grow the company by introducing more consultants to FHCL and establishing a strong identity within the market.

What was the first year like?

My first year has been relatively successful – slow in the beginning but certainly picking up pace earlier this year. Working independently is certainly a learning process. I’ve missed the banter of an open office and the chance to bounce ideas off colleagues but have more job satisfaction at the end of a day when I’ve landed another client.

If you were to lobby the government on anything PMI, what would it be?

The consensus view of myself and my co-director Lionel Barnett is that the government should develop a reformed version of the NHS based on the French system, with the state paying 70% and the individual 30% with exemptions for the aged and infirm. In that way it would cut out abuse of the NHS and, it would enable us to sell more PMI at 30% of the norm. There would be virtually no queues, and no waiting – as in France. Also, it would stem the drainage of resources and there would still be scope for efficiency savings as one of the political parties is proposing.

If you weren’t doing your current job, what ideally would you be doing?

I’d love to indulge my passion for animals, particularly helping those that have suffered at the hands of cruelty.

What is your retirement dream?

To enjoy the simple things in life – long leisurely walks with my dogs, breakfast by the sea, spending time with family and tending to my garden.