Medical insurance audit cuts premiums
19 October 2010
A recent medical insurance audit into a group policy covering expatriates abroad has saved one of our clients around 24% on their premiums, without changing insurers.
Bellwood Prestbury had been helping an international client to arrange Personal Accident insurance for expatriates working overseas in various locations, when the subject of international medical insurance cover was broached.
It’s a complex issue when you have different nationality employees working in different countries. The client asked us to carry out a medical insurance audit to look into the cover they had in place. They were adamant that they had no intention of changing providers.
As an independent expert in international medical insurance, Bellwood Prestbury has a global view of all the products and services available and is able to assess policies objectively. Once we had gathered the policy data from the client and the insurer, we calculated that the client was paying about £9,000 a year in overcharged premiums – about 24% of the total annual premium.
Ed Watling, an international benefits consultant at Bellwood Prestbury explains: “The overcharging was down to the fact that the client’s international health insurance premium included USA cover, which wasn’t needed for most employees. Cover for the USA is significantly higher – three times higher in some cases. Many international medical policies include USA cover as a default, so it’s very easy to end up overpaying if you are not careful.”
We arranged for the policy coverage to be changed on renewal. This meant that the renewal rate was substantially cheaper than originally quoted – £29,000 rather than £38,000.
The client paid premiums automatically by direct debit. When the insurer issued the revised invoice, the team at Bellwood Prestbury double checked the charging and discovered that the insurer had only ‘half-fixed’ the issues - the renewal premium was still £4,000 too high.
Ed Watling says this is not an unusual example. “Almost every time a client uses our free audit service, they benefit from significant savings. Sometimes they have the wrong cover, sometimes the paperwork is incorrect, and sometimes, as in this case, it’s both.”
If you would like to take advantage of a free medical insurance audit for your company, or are interested in our international insurance audit service for any other kind of cover, get in touch with our team.