PMI lacks value, say advisers

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Advisers are failing to recommend private medical insurance because they believe it is too expensive, clients are not interested in it and it is not valuable to their business, according to a report from Defaqto.

The report - Individual PMI 2007: Dead Duck or Sleeping Giant - reveals private medical insurance is outsold five to one by pet insurance, as just one million individual PMI policies are currently in force. Defaqto’s annual IFA satisfaction survey shows 46% of advisers never advise on PMI and 50% do so infrequently, saying they don’t believe PMI is valuable to their business and many lack the knowledge or training to sell the product. Others criticise the product for being too expensive, but the report says PMI is potentially a major money spinner for IFAs, particularly those involved ...

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