The two types of underwriting used by medical insurers
There are two main types of underwriting used in the UK health insurance industry: full medical underwriting and moratorium underwriting.
Full medical underwriting involves a thorough analysis of an individual's medical history, including any pre-existing conditions, to determine their overall health risk, the cost of coverage and whether there should be any exclusions on the policy. It's typically used when an individual has a more complicated medical history and would like clarity on exclusions before taking out the policy.
Moratorium underwriting is a simplified form of underwriting that does not require an in-depth evaluation of an individual's medical history. Instead, it uses a set of criteria, such as age and occupation, to determine the individual's eligibility for coverage. Moratorium Underwriting is far faster than Full Medical Underwriting, and over 95% of new policies in the UK are written on a Moratorium basis. However, be aware you will have less clarity over exclusions relating to pre-existing conditions, as there will be a broad exclusion on any medical conditions from the past five years.
How can I find out more about these types of underwriting?
We've written two detailed guides which explain how both Full Medical Underwriting and Moratorium Underwriting work. However, as with most things related to health insurance, you should always speak with a financial adviser to get personalised advice, as they can help you make the best decision based on your circumstances and medical history.