Many insurance products are independently rated, but what really is the difference between a four-star and a five-star policy?
For private medical and personal health insurance, ratings range from one to five. They aim to make it easier for customers to choose a product based on the features offered and not just the price.
What are insurance star ratings?
The star rating is not a reflection of customer satisfaction or necessarily a perception of the insurance product’s quality.
The star rating is based on the key features and benefits of the product. Star ratings also take into account any optional add-ons and extras offered with each policy.
A one-star rated product will be more basic than that with five stars.
Who provides star ratings of insurance products?
There are several independent insurance rating companies around the world. One of the most common is Defaqto.
Defaqto is an independent research company focussing on financial products.
They have worked with The Association of Medical Insurance Intermediaries to determine each health and medical insurance category.
What does each star rating mean for medical insurance?
A lower star rating does not necessarily mean that an insurance product is inferior to one with a higher star rating.
Each person will have different requirements from a medical insurance policy. It may be that a lower star rating suits your needs just fine. With insurance, you need to ensure you have just the right cover level for your own circumstances. More features than you need, and you will simply pay too much. Few features than you need, and you be at risk if something goes wrong determines health insurance cost.
However, you should remember that medical insurance is a complex product. You will benefit from seeking expert advice before choosing a healthcare insurance policy.
Defaqto assesses some 30 to 100 factors to determine a star rating, depending on the particular product.
There are several core criteria that a health insurance product must feature to receive a five-star rating. The core criteria include cancer care, inpatient and outpatient services.
Star ratings make it easy to compare products at a glance. However, if you need advice or are unsure of the features of any medical insurance policy, contact our friendly experts today