Sovereign head of marketing Vena Crawley says there is a shift away from group schemes.
"In recent years Sovereign has seen a shift away from group health schemes. Our customers increasingly value the flexibility and transportability of individual health policies. He says the economies of scale in Sovereign's group health business have proved unsustainable.
“Rather than pass on these costs to other areas of the business, Sovereign is focusing on the future, which we believes lies in individual health.”
Crawley says Sovereign remains “committed to honouring our contracts for existing group health plans and are working closely with advisers and customers to determine the best solution for each group health policy. For some, this may mean a switch to individual solutions for plan members, for others, alternatives can be discussed on a case by case basis.
"Our objective is to help both advisers and customers find a solution that best fits the customer’s needs, so if they choose to change from their existing arrangement, we can help them make that transition easily.
"Competition in the health insurance market is important for customers so they can be assured of good terms and conditions, and a variety of health solutions."
Sovereign recently launched two new health products; Key Health and Absolute Health.
Crawley says Sovereign will be working closely with advisers to ensure a seamless transition for group renewals or to individual contracts.
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