Companies across the UK are becoming increasingly concerned at the solvency of their insurers but should be certain that the cash plan sector is in rudimentary health.
The Health Insurance Cash Plans Boardroom Briefing had on their agenda a motion to discuss the attitudes to the difficulties the finance markets are facing and that some insurers found themselves in a financial rut. This led to some finance directors and HR professionals seeking reassurances from their insurance provider that their health cash plans are safeguarded.
Cash plan providers are facing more scrutiny over the coming years as part of Solvency II, a capital adequacy scheme for the European insurance industry, which aims to unify a single EU insurance market as well as enhance consumer protection.
However, members of the board were confident that the long tradition and non-for-profit status of most cash plan providers puts them on a sound financial footing.
Unfortunately the cash plan market has not come through the recent recession unscathed, figures show that the spending on cash health plans fell by 7.1 per cent during 2010. Additionally, the average price paid for cash plans had decreased by approximately 3 per cent.
The future of such financial packages will no doubt under more scrutiny as the UK faces more and more scrutiny in such times of austerity as well as the new Solvency Directive II due to roll around in 2014.