Healthcare cash plan provider Medicash has announced a record year of trading in its 2014 annual accounts released today. Increases in policyholder numbers, premiums and customer satisfaction levels have all contributed to Medicash’s strongest overall financial performance to date.
An unprecedented 85% increase in take-up of corporate plans took the total number of Medicash policyholders to 170,000 – up 16% on the previous year and representing 40% of the total client base. The company reported an increase in earned premiums from £20.7m in 2013 to £21.8m in December 2014.
Customer satisfaction remained a key component of Medicash’s achievements with 99.5% of complaints being resolved within five working days compared with 92.1% in 2013. One of the strongest customer retention records in the health cash plan sector was demonstrated with an attrition rate of just 5.6 per cent. Medicash was re-awarded the top level of ‘Exceptional’ status in 2014 as part of the acclaimed Investor in Customers assessment on the strength of its client relationships and reputation for exceptional customer service. Medicash is the only health cash plan to have achieved this level of accreditation from IIC and it is the highest ever accreditation awarded to an insurer.
The business maintained a market-leading payout on claims with 98% of claims paid as a proportion of those received. The claims ratio (claims incurred as a proportion of premiums) was reduced to 78.8% from 79.2%.
Chief Executive Sue Weir said: “2014 represents the fifth consecutive year of record trading results for Medicash and the figures reflect the hard work and commitment of our 85 strong team in Liverpool. Medicash has continued its strategy around investment in innovation and product development.
“Maintaining our focus on IT and technology has also resulted in us being able to provide individuals and employers with quality, affordable healthcare solutions and services that meet people’s personal and business needs.”
Last year, Medicash’s charitable trust donated over £140,000 to charitable causes.
A programme around strengthening relationships in the intermediary market has seen commissions paid to this sector rise by 146%. The strategy to generate sales through this market has proven successful and now accounts for over 60% of all new business.