Private Health Insurance - broker vs direct

benxg

Hi, 

Have read through the MSE articles on private health insurance and followed the recommendations around getting price comparisons, using the broker sites Active Quote and Assured Futures.  I've found some policies that would probably be suitable - but am unsure on the pros and cons of buying through those comparison sites vs going direct.

It seems like the brokers mentioned above will give some cashback (I think £110 / £90 respectively after a period of being insured), whereas there is no cashback with the direct route. 

On the other hand, with the broker route, if I wanted to make any changes to the policies, I'd have to go back to Active Quote or Assured Futures and do any amendments through them. 

But is that it?  Are there any other reasons to go (or not go) direct?

Best wishes,

Ben

dunstonh

Just to confirm, are you referring to private medical insurance or permanent health insurance?  (two different product types but you have mixed the names up)

Comparison sites won't offer a wide range of providers (of either type).  Brokers may be restricted or close to whole of market.  Direct will only offer their own product.

benxg

Hi Dunstonh, thanks for the reply, 

I meant private medical insurance, apologies for the terminology error!

Yes - neither of those comparison sites I mentioned above (which I got from the MSE main site) provided many options, although there were ones that suited me (I don't have any pre-existing conditions or other complex requirement).

The comparison sites I mentioned - Active Quote and Assured Futures - are regarded as brokers by the medical providers themselves (I called one of medical companies and asked about going direct instead of via AQ or AF for the cashback).  

I'm not sure if the difference has any real impact.  Comparing to flight brokers (for example) where changes of flight are more likely - there are plenty of examples of people having problems with brokers but not with airlines direct.  But are there any significant reasons to go direct with private medical insurance?  Can't find anything online that indicates one way or the other, hence the question...

BW, Ben

DullGreyGuy

Sounds like you are using non-advisory brokers who are simply exposing their panel of insurer's results in a similar way to a comparison site but as you ultimately buy from them not the underlying quoter they are a broker rather than a comparison site.

There's not much benefit or detriment to having a broker involved, especially if they are non-advisory. They may incentivise you with cashback etc but that tends to be relatively minor -v- the lifetime cost of the policy. They may rebroke the policy at renewal to let you know if someone else has become cheaper but from my conversations with PMI brokers thats more the exception than the rule. 

Obviously if you went to an advisory broker then you are in a different place because you get their opinion on the suitability of each policy for your demands and needs but that tends to be more relevant for those with more complex needs.