TL;DR
For regional UK businesses, WPA and The Exeter offer significant savings on private medical insurance by using local hospital networks. As an experienced broker that has helped arrange over 900,000 policies of various kinds, WeCovr can compare these specialist providers to find the best value for your company.
Key takeaways
- Regional businesses can save thousands by avoiding PMI policies with expensive, unnecessary London-centric hospital lists.
- WPA offers flexibility with a 'freedom of choice' model but may result in payment shortfalls at high-cost hospitals.
- The Exeter provides cost certainty with structured, tiered hospital lists, making it a predictable choice for SMEs.
- Both WPA and The Exeter are not-for-profit/friendly societies, often leading to better value and customer service.
- Using a specialist broker is crucial to navigate the nuances of these providers and secure the best terms for your business.
Choosing the right private medical insurance (PMI) for your business can feel like navigating a minefield. For companies based outside London, this is doubly true. You risk overpaying significantly for access to hospitals you'll never use. At WeCovr, our experienced team has helped arrange over 900,000 policies of various kinds, and we see this costly mistake all the time. The solution? Look beyond the household names to specialist providers like WPA and The Exeter.
This in-depth guide compares WPA and The Exeter, two of the best health insurance providers for regional UK businesses. We'll break down why their focus on local provider networks can save your company thousands, helping you provide a brilliant employee benefit without breaking the bank.
Why local provider networks save non-London businesses thousands
The single biggest factor influencing the cost of a private medical insurance UK policy is the 'hospital list'. This is the menu of private hospitals and facilities where your employees can receive treatment.
Insurers typically group hospitals into tiers. The most expensive tiers include the premier private facilities in Central London, such as the HCA group (The Lister, The Princess Grace, London Bridge Hospital). While excellent, treatment at these centres comes with a premium price tag, which is passed directly onto you in your policy cost.
For a business in Bristol, Birmingham, or Aberdeen, paying for top-tier London access is often a waste of money. Your employees are far more likely to want treatment at their local Nuffield, Spire, or Circle Health Group hospital.
This is where providers like WPA and The Exeter excel. They have built their business models around offering more realistic and affordable hospital networks tailored to members across the UK, not just within the M25. By selecting a policy that excludes or limits access to high-cost London hospitals, a regional business can reduce its PMI premiums by as much as 20-40%.
Key Insight: Paying for a national, London-inclusive hospital list when your business is based in the regions is like paying for a first-class flight ticket and only using the airport lounge. You're paying for a service you will almost certainly never use.
The "Big Four" vs. The Specialists
The UK PMI market is dominated by four large providers: Aviva, AXA Health, Bupa, and Vitality. While they offer excellent, comprehensive products, their standard SME policies can sometimes default to broader, more expensive hospital lists.
WPA and The Exeter operate differently. As a Provident Association and a Friendly Society respectively, they are not-for-profit organisations. This means they don't have shareholders to pay dividends to. Instead, they reinvest profits back into the business to improve service and keep pricing competitive. Their focus has always been on providing sustainable, high-value cover for individuals, families, and small to medium-sized enterprises (SMEs) across the country.
| Provider Type | Business Structure | Primary Focus | Typical Hospital Approach |
|---|---|---|---|
| The "Big Four" | Public/Private Ltd Co | Mass Market, Corporate | Comprehensive, often London-inclusive |
| The Specialists | Not-for-Profit | SMEs, Self-Employed, Regional | Tiered, flexible, cost-effective |
Deep Dive: WPA Health Insurance for Regional Businesses
Western Provident Association (WPA) has been providing health insurance since 1901. As a not-for-profit association, their ethos is centred on customer service and ethical practices. They are particularly well-regarded for their flexible approach, which can be a huge advantage for SMEs.
WPA's Network Philosophy: "Freedom and Flexibility"
WPA's core philosophy is different from most other insurers. While they do have hospital lists, their main approach, especially on their flagship 'Complete Health' policies, is one of shared responsibility and benefit reimbursement.
Instead of a rigid list, WPA publishes a list of recognised hospitals and specialists. When a member needs treatment, WPA agrees to reimburse costs up to a set level for a given procedure. This provides employees with enormous freedom to choose where they are treated.
However, there's a crucial catch: if the employee chooses a particularly expensive hospital (like a prime London centre), the hospital's fees may exceed WPA's reimbursement limit. In this case, the member is responsible for paying the 'shortfall'.
For a regional business, this model is fantastic. Employees can use their local private hospital, where fees are almost always within WPA's limits, meaning no shortfalls. The business benefits from the lower premium associated with this model, as WPA isn't pricing for guaranteed access to the most expensive facilities.
Key Benefits of WPA for SMEs
- Shared Responsibility: A unique option where the business can choose to pay, for example, 75% of the premium, with the employee contributing the remaining 25%. This makes the benefit more affordable for the company while creating a tangible sense of value for the employee.
- Flexible Underwriting: WPA is known for its competitive 'switch' terms, making it easy for businesses to move their existing PMI policy without losing cover for pre-existing conditions.
- Excellent Customer Service: As a not-for-profit, WPA consistently receives high praise for its UK-based, personal claims service.
- Advanced Cancer Care: WPA provides extensive cancer cover, including access to new and experimental drugs not yet available on the NHS.
Insider Tip: The WPA 'shortfall' risk is often misunderstood. For 95% of businesses outside London, it's a non-issue as regional hospital fees align with WPA's benefit limits. A broker like WeCovr can help you understand this model and confirm if it's right for your location.
Deep Dive: The Exeter Health Insurance for Regional Businesses
The Exeter is a Friendly Society with a history stretching back over a century. They specialise in providing insurance for the self-employed, professionals, and SMEs. Their products are designed for clarity, value, and practicality.
The Exeter's Network Philosophy: "Cost-Effective Tiers"
In contrast to WPA's reimbursement model, The Exeter uses a more traditional, but highly effective, tiered hospital list approach. This provides cost certainty for businesses. Their main SME product, Health+, offers a choice of lists:
- Essential: A curated list of quality local private hospitals across the UK, excluding the most expensive options.
- Standard: A broader list including most Spire, Nuffield, and Circle Health Group hospitals.
- Extended: A comprehensive list that includes access to a selection of Central London hospitals.
For a regional business, choosing the 'Essential' or 'Standard' list provides excellent local coverage at a highly competitive price. You know exactly what you're getting, and your employees have a clear list of approved facilities with no risk of shortfalls.
Key Benefits of The Exeter for SMEs
- Unlimited Outpatient Diagnostics: This is a major selling point. On their Health+ policy, once your excess is paid, The Exeter offers unlimited cover for diagnostic tests and consultations needed to find out what's wrong. This can be invaluable for getting a swift diagnosis.
- Strong Mental Health Cover: The Exeter includes solid cover for mental health treatment as a core part of its policies, a benefit of growing importance for employers.
- Cost Certainty: The tiered hospital list means no surprise costs. The premium you pay directly reflects the list you choose, making budgeting simple and predictable.
- Community-Rated Schemes: For very small businesses (even from 2 employees), they offer options that don't increase premiums based on your specific claims history, providing more stable renewals.
WPA vs. The Exeter: Head-to-Head Comparison for a Regional Business
To truly understand the difference, let's compare them side-by-side from the perspective of a 15-employee marketing agency based in Manchester.
| Feature | WPA (Complete Health) | The Exeter (Health+) | Adviser Insight |
|---|---|---|---|
| Philosophy | Freedom of choice via benefit reimbursement. | Structured choice via tiered hospital lists. | WPA offers more flexibility, The Exeter offers more certainty. |
| Hospital Access | Member can choose any recognised hospital. | Member must use a hospital from the chosen list. | WPA's model is great for employees who want control. The Exeter's is simpler to administer. |
| Cost Model | Premiums are lower, but a risk of a shortfall exists at high-cost centres. | Premiums are fixed based on the chosen list. No risk of shortfalls. | For our Manchester agency, WPA is likely cheaper as a London shortfall isn't a concern. |
| Key Strength | Unmatched flexibility, Shared Responsibility option. | Unlimited outpatient diagnostics, cost certainty. | The Exeter's diagnostic promise is a huge benefit for speedy resolutions. |
| Ideal For | Businesses wanting to empower employees with choice and control costs via co-payment. | Businesses wanting simple, predictable cover with strong diagnostic and mental health benefits. | The choice depends on company culture: empowerment (WPA) vs. simplicity (The Exeter). |
| Mental Health | Good cover, often as an add-on. | Strong cover is included as a core benefit. | The Exeter has a slight edge here for its integrated approach. |
Scenario: A Manchester Agency
For our 15-person agency, both providers are excellent choices.
- With WPA, they could select a policy with a £250 excess and benefit from a very low premium. Their employees in Manchester would have their choice of The Alexandra Hospital or Spire Manchester, with costs fully covered.
- With The Exeter, they could choose the 'Standard' hospital list, which also includes those hospitals. The premium might be slightly higher than WPA's, but they gain the peace of mind of unlimited diagnostics and zero risk of any shortfalls.
An expert broker can model these exact scenarios for you, showing you the precise cost difference and helping you weigh the pros and cons.
The Critical Role of Underwriting for Your Business
When you set up a company PMI scheme, you must choose a type of 'underwriting'. This is how the insurer assesses pre-existing medical conditions.
- Full Medical Underwriting (FMU): Each employee completes a detailed health questionnaire. The insurer then applies specific exclusions for any declared conditions. This is common for new schemes for very small businesses.
- Moratorium (Mori): The insurer doesn't ask for medical history upfront. Instead, a pre-existing condition from the last 5 years is excluded unless the member goes two full years on the policy without any symptoms, treatment, or advice for it. It's simple but can create uncertainty at the point of claim.
- Continued Personal Medical Exclusions (CPME / 'Switch'): This is the gold standard if your business already has a PMI policy. The new insurer agrees to carry over the same exclusions as your old policy. This means employees with existing conditions (e.g., a bad back, a history of joint pain) remain covered as they were before. There is no new moratorium period.
Crucial Advice: If you have an existing scheme, you should always seek a 'Switch' underwriting option. Both WPA and The Exeter offer very competitive switch terms, making them fantastic choices for businesses looking to move from a more expensive provider.
A note on all UK PMI: It's vital to understand that standard private medical insurance in the UK is designed to cover acute conditions – new, unforeseen illnesses or injuries that are likely to respond quickly to treatment. It does not cover chronic conditions (like diabetes, asthma, or high blood pressure) or pre-existing conditions that were present before you joined, except under specific 'switch' terms.
How to Cut Costs Without Compromising on Care
Beyond choosing the right provider, you have several powerful tools to manage your PMI costs:
- Choose the Right Hospital List: As we've seen, this is the most effective way to save. Deselecting Central London is a must for most regional businesses.
- Introduce an Excess: This is the amount an employee pays towards their claim each year (e.g., the first £100 or £250). A higher excess significantly lowers the premium for everyone.
- Use the 6-Week Option: This popular feature means if the NHS can provide the required treatment within six weeks, the employee uses the NHS. If the wait is longer, the private medical insurance kicks in. This can reduce premiums by 15-25%.
- Guided Consultant Lists: Some insurers offer a further discount if employees agree to choose from a smaller, curated list of approved specialists.
Working with an independent broker like WeCovr allows you to mix and match these options across the entire market to build the perfect, most cost-effective plan for your specific needs and budget.
Why Use a Specialist PMI Broker like WeCovr?
While you can go direct to an insurer, using a specialist, FCA-regulated broker has significant advantages, especially when comparing nuanced providers like WPA and The Exeter.
- Whole-of-Market View: We compare these specialists against the 'big four' and other providers in one simple process.
- Expert Knowledge: We understand the fine print, like WPA's reimbursement limits and The Exeter's diagnostic benefits, helping you avoid costly mistakes.
- No Cost to You: Our service is free. We are paid a commission by the insurer you choose, which is built into the standard policy price. You don't pay more to use our expertise.
- Claims Advocacy: If you run into any issues at the point of a claim, we are here to fight your corner.
- Annual Review Service: At renewal, we re-scan the market to ensure you are still on the best possible deal, helping you switch providers seamlessly if a better option emerges.
As a WeCovr client, you also get complimentary access to our AI calorie tracking app, CalorieHero, and can benefit from discounts when you take out other policies like life or critical illness cover.
Ready to find out if WPA or The Exeter could save your regional business money? Let our expert team provide you with a free, no-obligation comparison quote.
What is the main difference between WPA and The Exeter for a regional business?
Does private health insurance cover pre-existing conditions?
How can my business save money on a PMI policy?
Is it more expensive to use a broker like WeCovr?
Sources
- NHS England
- ONS (Office for National Statistics)
- FCA (Financial Conduct Authority)
- gov.uk
- NICE (National Institute for Health and Care Excellence)
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.
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