By Peter Pallot
Last Updated: 4:45PM BST 29 Mar 2009
Analysis of inquiries to an insurer's internet site since December 2008 shows that more than half of those currently insured are looking for cheaper cover.
Medicare International said 56 per cent of inquiries from existing policyholders were comparing prices with their current provider. The insurer described the result "as a significant trend in the healthcare insurance market, as people 'shop around' for the best deals on the market".
The insurer also claims to have picked up a change in profile of policyholder. As international companies shed staff, these individuals lose corporate insurance cover but may still wish, or need, to work abroad. Consequently they are seeking to buy what their former employer provided but are being more cost conscious.
David Pryor, managing director at Medicare, said the credit crisis was prompting employers increasingly to turn to short-term hire. Many of those hired were self-employed.
He said: "Private healthcare customers are looking to find the most competitive rates on the market today."
Although taking steps to economise may seem logical, insurers can cite many occasions in which skimping on cover backfires. Surveys show that people tend to underestimate the cost of medical care. Market leader Bupa International has just warned that some medical rescues can cost £50,000 – and that is before subsequent treatment bills come in.
Another insurer points to the potential dangers of keeping cover in reduced form, for instance by cutting chronic disease cover.
Matt Gale, a regional sales consultant at Expacare, said: "Cutting this cover could cost clients and their families a huge amount of money and trauma, not only short term but over a long period, which could be especially bad given current uncertainties about employment."
Insurance adviser Stephen Walker said: "As often as not, expats don't have public medicine to fall back on, so it's even more important to keep medical insurance in place."
"Medical insurance provides the peace of mind of knowing that you are not dependent on state medicine to get the right treatment when you need it, but can arrange hospital appointments and treatment according to your home and workplace schedules," added Mr Walker, director of Brighton-based Medical Insurance Services.
