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UK Private Medical Insurance 2011 Product Image

UK Private Medical Insurance 2011

  • Published: August 2011
  • Region: United Kingdom, Great Britain
  • 56 pages
  • Datamonitor

This report gives a comprehensive analysis of the UK private medical insurance sector. An exclusive survey provides insight into customer trends and attitudes towards private medical insurance. For the first time this year the report also highlights how consumers are using online channels for research and how many look to blogs for recommendations.

Features and benefits

- Detailed consumer research into individual trends, attitudes and buying behaviour.
- Data on the market share of the top groups as well as an analysis of the market spend of the top brands.
- Forecasts for the market size and subscriber numbers split by individual and group business.

Highlights

- Industry experts interviewed by Datamonitor expect the NHS reforms to impact upon the current service. Funding changes and restructuring are expected to affect the quality and availability of care provided by the NHS. In particular, waiting lists are expected to increase as less urgent treatments are given lesser priority.
- When choosing their insurer, PMI customers look for a well-known insurance brand that has an untarnished reputation. The results of The Customer Insight Survey highlight READ MORE >

Executive Summary
The group private medical insurance market is recovering, while the individual market continues to decline
The individual market declined in
The group market increased in
Impact of the NHS changes
The changes may lead to new PMI opportunities
Consumers choose a strong brand and conduct research online
A well-known brand and an untarnished reputation are vital
Individuals are researching online
Takeovers reshape the market
PruHealth moves up to fourth position
Simplyhealth moves up to fifth position
Total PMI GEP will continue to grow throughout the forecast period
The PMI market is expected to grow in
OVERVIEW
Catalyst
Summary
MARKET CONTEXT
Another tough year for PMI
Consumer income is being squeezed
The group PMI market is recovering while the individual market continues to decline
The individual market declined in
The group market increased in
The UK PMI market grew by 4.9% in
Individual and group subscribers are falling
Individual and group PMI subscribers shrunk by 1.1% in
The total number of individuals covered has reduced
Insurers pushed through premium increases in
The increase in rates was higher than the rate of claims inflation
The increase in rates came from the group sector rather than the individual sector
Insurers are looking for ways to control medical costs
Managing suppliers better
Introducing low cost products
Controlling the cost of cancer treatments
PMI insurers are trying to minimize customer churn
The traditional sector remains stable
Individuals leaving corporate schemes are being targeted
Impact of the NHS changes
The NHS is to be restructured
The changes may lead to new PMI opportunities
Out of pocket spending highlights opportunities for PMI
£14.3bn was spent on health products and services in
CUSTOMER FOCUS
Introduction
Penetration in 2010 was down on the previous year
Penetration has declined, with only 14% of the adult population owning a PMI policy
PMI appeals to all age groups
High earners are the core market for PMI providers
PMI penetration is highest among customers in the A and B socioeconomic bands
25–35 year olds account for the majority of group PMI business
Consumers choose a strong brand and conduct research online
A well-known brand and an untarnished reputation are vital
MARKETING AND DISTRIBUTION
Introduction
Axa and Bupa were the big spenders on advertising in
Axa increased its advertising spend, while Bupa reduced its expenditure
Most providers are using one of two clear media strategies
Most PMI policies are arranged through employers or sold direct
47.1% of PMI policies are arranged via an employer
Arranging cover through an employer is important for all age groups
The online channel is growing in importance
Aggregators are increasing their presence in the PMI market
Individuals are increasingly researching online
Brokers are demanding better online services from insurers
Brokers face increased competition
Companies are choosing multiple brokers
Brokers are pushing for higher commission rates
Private medical insurance is attracting new brokers
Clear Insurance Management has launched a new healthcare arm
Brokers to increase their standards
Harder exams for healthcare brokers
COMPETITOR DYNAMICS
Introduction
Takeovers have reshaped the market
Consolidation reduces choice
PruHealth moves up to fourth position
Simplyhealth moves into fifth position
The top three still dominate the market
Bupa remains in first place
Strong growth from Aviva in
Insurers are looking to strengthen their operations and propositions
Axa PPP has extended its online presence with its latest acquisition
Bupa has closed its self-employed sales force
Aviva has taken a minority stake in rehabilitation firm HCML
Healthcare products on intermediary portal
New products are being developed
PruHealth has overhauled its product offering
Axa has introduced a new lower cost "six week option"
Exeter Family Friendly has cut premiums and added new underwriting options
New range of cover for treatment abroad
Freedom Healthnet has launched a comprehensive health insurance policy
FUTURE DECODED
Introduction
Growth in the PMI market will depend on the health of the economy
The neutral scenario assumes a very slow but steady recovery in the UK economy
The base scenario assumes an increased take up of low cost products
Changes to the NHS may affect demand for PMI during the forecast period
The NHS scenario assumes that PMI will be impacted by the reforms
Total PMI GEP will continue to grow throughout the forecast period
The PMI market is expected to grow in
Premium rates are expected to increase throughout the forecast period
The group sector is expected to see higher growth than the individual market
Subscriber numbers will increase from 2012 onwards
Subscribers will be attracted to the PMI market after
APPENDIX
Methodology
Datamonitor’s General Insurance Consumer Survey
Datamonitor Customer Insight Survey
Definitions
Earned premium
Gross premium
Net premium
Private medical insurance
Written premium
Further reading
Ask the analyst
Disclaimer

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