What is one advantage of having group PMI schemes for employees?

Having group private medical insurance (PMI) schemes for employees offers the advantage of lower premiums primarily due to the principle of risk pooling and economies of scale. In a group scheme, the insurance provider can spread the risk across a larger number of individuals, which generally leads to cost savings. The collective purchasing power of the group allows the insurer to offer more competitive pricing compared to individual policies.

Additionally, because the insurance is provided as part of an employment package, employers often negotiate favorable terms with insurers, resulting in lower costs for all members of the group. This makes group PMI a more affordable option for employees compared to purchasing individual coverage.

Moreover, the structure of group PMI means that insurers may not require extensive medical underwriting or individual assessments, making the process of obtaining coverage more accessible and straightforward, further contributing to lower overall costs for employees.