Contents:

Overview 1 Catalyst 1 Summary 1 Executive Summary 2 The healthcare cash plan market was worth approximately £550 million in 2007 2 Cash plan providers reduced marketing outlays in 2007 with the principle market continuing to be older consumers 2 Simplyhealth Group dominates the healthcare cash plan market 3 The UK healthcare cash plans market is forecast to grow steadily at an average rate 1.6% 3 Market Context 8 Introduction 8 The healthcare cash plan market was worth approximately £550 million in 2007 8 The healthcare cash plan market was profitable in 2007 9 Cash plan providers have expanded benefits to offer more to corporate and individual clients 10 Customer Focus 12 Introduction 12 The majority of cash plan consumers are over the age of 45 12 Healthcare cash plan providers spent £4.0 million on advertising in 2007 with Simplyhealth companies dominating marketing 13 Competitive Dynamics 17 Introduction 17 Simplyhealth Group dominates the healthcare cash plan market 17 Future Decoded 21 Introduction 21 The UK healthcare cash plans market is forecast to grow steadily at an average rate 1.6% 21 Increasing penetration rates can generate annual growth of 3.9% 24 Falling penetration rates will result in a market contraction as premium rate increases fail to offset fewer subscribers 25 APPENDIX 27 Supplimentary Data 27 Definitions 28 Methodology 28 Further reading 29 Ask the analyst 29 TABLE OF FIGURES Figure 1: Consumers over 45 form the majority of healthcare cash plan policyholders 13 Figure 2: Healthcare cash plan providers spent over half of their advertising budget on TV in 2007 15 Figure 3: Simplyhealth is the dominant player in the market 19 Figure 4: The market will grow marginally if penetration rates remain the same 23 Figure 5: Growth in penetration rates will lead to steady growth in the market 24 Figure 6: The market will stagnate if penetration rates fall 26