In a clear demonstration of its ability to respond quickly to the current challenging economic conditions, Groupama Healthcare has launched an innovative solution to help businesses struggling to pay their Group Private Medical Insurance premiums. In the event that a hard-pressed business has little alternative other than to cease an existing PMI scheme for employees, CoverBreak by Groupama Healthcare will enable a temporary suspension of their existing group cover for a 12-month period, with an option then to reinstate without the need for full medical underwriting. The development is the first of its kind in the PMI sector and applies both to businesses insured with Groupama or with competitors.

Alistair Sclare, Director of Healthcare, comments; “The number of British businesses that fail is set to rise to 36,000 in 2009, the equivalent of one in every 56 companies*. To say times are tough for small businesses would be an understatement. It’s not surprising then that in an effort to cut costs, some SMEs might consider stopping their Group PMI cover. This is a serious decision as any pre-existing conditions would be excluded under a new policy. However, CoverBreak by Groupama Healthcare removes this restriction allowing businesses to take a 12 month break and come back, reinstating the policy with the same medical underwriting terms they had. All that will apply is a temporary waiting period for conditions that have occurred during the cover break.”

To take advantage of CoverBreak, businesses will pay a fee that allows them the option to reinstate their cover at the end of the 12-month period. Crucially, it also offers brokers the opportunity to keep in touch with what otherwise may have been a lost customer.

Alistair Sclare concludes, “CoverBreak gives businesses the flexibility to cut costs during the recession. It also removes the inconvenience of shopping around for new cover or being medically re-underwritten when they are ready to buy again. Reinstating the policy requires minimal administration so when the economy improves businesses can get back on track quickly. The fact that we have brought this product to market so quickly is testament to the agility of our business and our focus on providing innovative solutions to meet the challenges our policyholders and brokers face today.”

*Source: BDO Stoy Hayward

Tags | group pmi, groupama, PMI insurance cover