TL;DR
Yes, UK businesses can switch private medical insurance providers even with an ongoing employee claim, thanks to Medical History Disregarded (MHD) transfers. At WeCovr, our expert brokers specialise in managing these seamless transitions, ensuring continuous cover without penalising team members for their health history.
Key takeaways
- MHD transfers allow groups to switch insurers without employees needing new medical underwriting, protecting ongoing claims.
- Your company's claims history, size, and demographics are key factors affecting the new premium.
- Switching can secure better benefits or lower costs, but a poor claims history can limit your options.
- An FCA-regulated broker like WeCovr is essential to navigate the complexities and find the best terms.
- Continuous cover is maintained; the new insurer takes over eligible ongoing claims from the switch date.
Facing a steep renewal premium for your company's private medical insurance? It's a common challenge for UK businesses. But what if a key employee is in the middle of treatment? Many HR managers and business owners fear they are trapped, unable to switch providers without jeopardising an ongoing claim. At WeCovr, where our experienced team has managed the arrangement of over 900,000 policies, we can confirm this is a myth. It is absolutely possible to switch insurers and protect your team.
This guide explains how Medical History Disregarded (MHD) transfers make this possible, ensuring continuous, seamless cover for your employees.
How Medical History Disregarded (MHD) transfers work for corporate policies
Medical History Disregarded, or MHD, is the most comprehensive type of underwriting available for UK group health insurance schemes. In simple terms, when a company policy is set up on an MHD basis, the insurer agrees to ignore the pre-existing medical history of all employees joining the scheme.
This means that conditions an employee has suffered from in the past will be covered, provided they fall within the general terms of the policy. This is a powerful benefit, offering peace of mind to your team.
When switching providers, a "MHD transfer" allows this principle to carry over. The new insurer essentially agrees to pick up where the old one left off. They will continue to cover eligible conditions and, crucially, take over the funding of any active, ongoing claims from the date the new policy begins.
This is fundamentally different from the underwriting methods used for individual or very small group policies.
| Underwriting Type | How It Works | Typical Use Case | Impact on Switching with a Claim |
|---|---|---|---|
| Medical History Disregarded (MHD) | Insurer covers eligible conditions, regardless of past medical history. | Corporate schemes, typically 15-20+ employees. | Ideal. The new insurer takes over ongoing claims seamlessly. |
| Moratorium (MORI) | Pre-existing conditions from the last 5 years are excluded unless the member goes a 2-year continuous period without symptoms, treatment, or advice after joining. | Individual, family, and small group policies. | Problematic. An ongoing claim is for a pre-existing condition, so it would be excluded by the new insurer. |
| Full Medical Underwriting (FMU) | Applicants complete a detailed health questionnaire. The insurer may place specific exclusions on conditions declared. | Individual, family, and small group policies. | Problematic. The condition being claimed for would be identified and likely excluded from the new policy. |
For any business with more than a handful of employees, securing an MHD transfer is the only viable way to switch providers without disrupting employee care.
The Critical Question: Can You Switch with an Ongoing Claim?
Yes, you can. With a Medical History Disregarded transfer, the new insurer contractually agrees to take on the liability for any eligible claims that are active at the point of the switch.
Here’s a practical scenario:
- Company: A design agency with 35 employees.
- Insurer A: The current provider.
- Employee: Sarah, a senior designer, was diagnosed with breast cancer three months ago and is undergoing a 6-month course of chemotherapy, funded by Insurer A.
- The Problem: At renewal, Insurer A increases the company's premium by 28%.
- The Solution: The company engages a broker, who finds a more competitive quote with better mental health support from Insurer B on MHD transfer terms.
What happens on the switch date?
From the day the new policy with Insurer B starts, they take over the financial responsibility for Sarah's remaining chemotherapy sessions. There is no break in her treatment and no need for her to worry about funding. Insurer A pays for all treatment up to the switch date, and Insurer B pays for everything after.
The Golden Rule: For a claim to be transferred, it must be eligible for cover under both the old policy and the new one. This is why a "like-for-like" benefit comparison is non-negotiable. A cheaper policy might exclude certain cancer drugs or limit outpatient consultations, which could jeopardise the continuity of care. An expert PMI broker is vital for spotting these potential discrepancies.
Private medical insurance in the UK is designed for acute conditions—illnesses that are curable and short-term. It does not cover chronic conditions, which are long-term and require ongoing management rather than a cure (e.g., diabetes or asthma). An ongoing claim for an acute condition, like cancer treatment or post-operative physiotherapy, is precisely what an MHD transfer is designed to protect.
What Insurers Consider Before Approving an MHD Transfer
Insurers don't approve MHD transfers automatically. They are taking on a significant and often unknown financial risk. To make an informed decision, their underwriters will conduct a thorough review of your company scheme.
Key factors they analyse include:
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Group Size: The larger the group, the more the risk is spread. Most insurers require a minimum of 15-20 employees for full MHD terms. However, a specialist broker like WeCovr can often negotiate MHD terms for groups as small as 5 or 10, depending on the insurer and the group's profile.
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Claims History: This is the most critical element. The new insurer will request a detailed claims report from your current provider, usually for the past three years. They will analyse the frequency, type, and cost of claims. A single, high-cost claim (like cancer treatment) is often viewed more favourably than a high volume of small, low-cost claims (e.g., frequent physiotherapy or diagnostics), which can suggest a high-claiming culture.
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Loss Ratio: Insurers calculate your "claims loss ratio" by dividing the total cost of claims paid out by the total premiums you've paid. A ratio consistently over 85-90% can make your scheme appear unprofitable and unattractive to a new provider.
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Membership Demographics: The age, gender, and geographical location of your employees all influence risk and pricing. A younger workforce based outside of central London will typically command a lower premium than an older workforce in the city, where hospital costs are highest.
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Industry: Some sectors, like construction or heavy manufacturing, are associated with higher rates of musculoskeletal claims, which will be factored into the underwriting.
Here's how your claims history can influence an insurer's decision:
| Claims History Scenario | Underwriter's View | Likely Outcome of Switch Request |
|---|---|---|
| Low Claims / Good Loss Ratio (<60%) | Seen as a profitable, low-risk group. | Highly attractive. Insurers will compete for your business, likely offering favourable terms and a competitive premium. |
| One High-Cost Ongoing Claim | Understood as a statistical event. The insurer will price in the known cost of this ongoing claim. | Generally very switchable. The new insurer can accurately forecast the cost and provide a quote. |
| High Frequency of Small-to-Medium Claims | Suggests a high-utilisation culture. May indicate underlying health issues or simply that staff are very engaged with the policy. | More challenging. Insurers may be cautious. Some may decline to quote, while others might impose a higher premium or specific terms. |
| Very Poor Loss Ratio (>120%) | Seen as a high-risk, unprofitable group. | Difficult to switch. A specialist broker may be able to find a solution, but options will be limited. It might involve accepting a higher excess or reduced benefits. |
A Step-by-Step Guide to Switching Your Corporate PMI Policy
Switching your company's health insurance might seem daunting, but a structured approach managed by an expert makes it a smooth process.
Step 1: Review and Define Your Objectives Before approaching the market, understand why you want to switch. Is it purely cost? Are employees unhappy with the service? Do you need better benefits, such as improved mental health support or virtual GP services? Having clear goals will help your broker find the perfect match.
Step 2: Engage an FCA-Regulated Broker This is the single most important step. A specialist private medical insurance broker works for you, not the insurer. They will understand the nuances of MHD transfers and have access to the entire market. An FCA-regulated firm like WeCovr provides this expert guidance at no direct cost to your business.
Step 3: Gather the Necessary Information Your broker will need the following to go to market:
- A copy of your current policy certificate and benefit schedule.
- A detailed claims history report from your current insurer (your broker will request this on your behalf).
- A list of current members, including their dates of birth (this can be anonymised).
Step 4: The Market Review Your broker will analyse your data and present your scheme to a panel of suitable insurers. They will champion your case, explaining the context behind your claims history and negotiating for the best possible MHD transfer terms.
Step 5: Analyse the Quotes and Recommendations You won't just get a list of prices. Your broker will provide a detailed comparison report that breaks down the differences in:
- Premiums and excesses.
- Core and optional benefits (e.g., outpatient limits, psychiatric cover).
- Hospital lists and network access.
- Value-added benefits (wellness apps, discounts etc.).
This analysis ensures you are comparing apples with apples and are fully aware of any changes in the level of cover.
Step 6: Decision and Seamless Transition Once you select your new provider, your broker will manage the entire transition. They handle the application, ensure the MHD transfer terms are correctly documented, and liaise with your old and new insurers to guarantee there is no gap in cover.
Step 7: Communicate Clearly with Your Team Your broker can help you draft clear communications for your employees. It's vital to reassure them that the switch is happening, explain any new benefits, and confirm that anyone with an ongoing claim is fully protected and will experience no disruption to their care.
As a WeCovr client, your team also gets complimentary access to our AI-powered wellness app, CalorieHero, a valuable added benefit you can highlight to staff.
Potential Pitfalls and Common Mistakes to Avoid
Navigating an MHD transfer successfully requires attention to detail. Here are some common errors we see companies make when they try to go it alone:
- Mistake #1: Focusing Exclusively on the Headline Premium. The cheapest quote is often cheap for a reason. It might come with a restricted hospital list, a lower outpatient limit, or no cover for psychiatric treatment. This can leave your employees underinsured when they need it most.
- Mistake #2: Not Ensuring a "Like-for-Like" Benefit Match. If an employee is having a specific treatment (e.g., using a particular biological cancer drug) and the new policy doesn't cover it, the new insurer will not pay. This is a catastrophic failure. A broker's primary job is to prevent this.
- Mistake #3: Misunderstanding the "Takeover Date". The new insurer is only responsible for costs incurred from the policy start date. Any treatment received before this date remains the responsibility of the previous insurer. This can cause confusion over who pays the final invoice from the old policy period.
- Mistake #4: Going Direct to an Insurer. Approaching a single insurer gives you no negotiating power and no view of the wider market. They will offer you their standard terms. A broker creates a competitive environment where multiple insurers bid for your business.
- Mistake #5: Forgetting about Value-Added Services. Modern PMI policies come with a host of valuable extras, from 24/7 virtual GPs to mental health support lines and gym discounts. These can have a huge positive impact on employee wellbeing and should be a key part of the comparison.
Comparing UK Insurers on MHD Transfers
The UK private health cover market is dominated by a few key players, each with a slightly different appetite for risk and approach to MHD transfers.
| Insurer | Typical MHD Group Size | General Approach & Strengths |
|---|---|---|
| AXA Health | 15+ | Known for high-quality service, comprehensive cancer cover, and strong mental health pathways. Often seen as a premium choice. |
| Bupa | 20+ | The UK's largest insurer. Has a vast network and a very strong brand. Can be flexible on terms for the right group. |
| Aviva | 15+ | Offers a wide range of options and is known for its "Expert Select" hospital choice model, which can help manage costs. Strong digital tools. |
| Vitality | 5+ | Unique model that rewards healthy living with discounts and perks. Can be very competitive for younger, active workforces. More willing to offer MHD to smaller groups. |
| The Exeter | 10+ | A friendly society known for excellent customer service and a clear, straightforward approach to underwriting and claims. |
Important Note: This table is a general guide. The exact terms, pricing, and minimum group size an insurer will offer depend entirely on your company's specific circumstances. Only a full market review by a broker can determine the best provider for you.
The Indispensable Role of a PMI Broker
For a complex switch involving ongoing claims, a broker isn't just helpful—they are essential.
An FCA-regulated broker like WeCovr acts as your advocate and expert guide throughout the entire process. We:
- Provide Whole-of-Market Access: We work with all major UK insurers and specialist providers, ensuring you see every available option.
- Leverage Underwriter Relationships: Our established relationships allow us to negotiate terms that companies cannot achieve directly, especially for groups with tricky claims histories.
- Perform In-Depth Policy Analysis: We meticulously compare the fine print of policy documents to ensure your ongoing claims will be fully covered and that there are no hidden downgrades in your cover.
- Manage the Administration: We handle all the paperwork, from data collection to submitting applications and ensuring a smooth, error-free transition.
- Offer Year-Round Support: Our job doesn't end when the policy is sold. We are there to help with claims queries, mid-term adjustments, and preparing for your next renewal.
What's more, when you use a broker for your private medical insurance, you often gain access to discounts on other business cover, such as life insurance or key person protection.
FAQs: Switching Corporate Health Insurance
What happens if the new policy doesn't cover a treatment that's part of an ongoing claim?
Do employees need to complete new medical questionnaires during an MHD switch?
How long does the corporate PMI switching process typically take?
Is there a minimum company size for an MHD switch?
Take Control of Your Health Insurance Renewal
Being locked into an expensive, underperforming health insurance policy is not a foregone conclusion, even with active employee claims. A Medical History Disregarded transfer is a powerful, established market mechanism designed specifically to facilitate movement and competition between insurers.
The key is not to go it alone. The complexities of policy wording and underwriting negotiations demand expert guidance. By partnering with an experienced, FCA-regulated broker, you can confidently explore the market, secure better value, and—most importantly—provide your team with the cast-iron reassurance that their health and wellbeing are protected without interruption.
Ready to see if you could get a better deal on your company's private medical insurance? Contact the WeCovr team today for a free, no-obligation market review and quote.
Sources
NHS England ONS FCA gov.uk NICE
Disclaimer: This is general guidance only and does not constitute formal tax or financial advice. Tax treatment depends on individual circumstances, policy terms, and HMRC interpretation, which cannot be guaranteed in advance. Whenever applicable, businesses and individuals should always consult a qualified accountant or tax adviser before arranging such policies.
