Dallas, TX: ReportsandReports announce Japanese UK Private Medical Insurance 2010 Market Research Report in its Store.
Browse complete UK Medical Insurance Market Report
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. The report also assesses the current market issues including a detailed look into innovations taking place and how insurers are responding to the changing customer needs throughout these testing times.
Scope
- Detailed consumer research into individual trends, attitudes and future buyer interest.
- New market innovations taking place and how providers are adjusting their propositions.
- 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
As with previous recessions, the most recent downturn appears to have taken its toll on the PMI market. The most recent recession, which began in the second half of 2008, caused a 5% fall in both individual and group subscribers during 2009.
The average premium rates for both group and individual policies continued to grow, by 2.2% and 7.2%, respectively. Rising premium rates have been an important cause for the decline in subscribers in the individual PMI sector in recent years, with potential policyholders put off by these increases.
Average premium rates for both individual and group policies are forecast to continue to rise. This increase will primarily be driven by claims inflation, which means that insurers need to increase their premium rates in order to maintain the same level of margin.
Reasons to Purchase
- Make informed decisions based on a solid understanding of customer attitudes and purchasing trends.
- Understand which of your competitors pose the greatest threat and which competitors are gaining or losing market share.
- Gain insight into the future direction of the sector, including market size and subscriber numbers and the major issues affecting this market.
Table Of Contents
Overview
Catalyst
Summary
Executive Summary
The group PMI market suffered significantly in 2009
Group PMI’s sensitivity to the wider economic climate was evident
Price inflation is a challenge for retaining individual PMI subscribers
Competition is high within the group sector, while employers are scaling back their PMI budget
Individual and group subscribers are falling
Individual and group PMI subscribers shrunk by 5% in 2009
The total number of people covered by PMI decreased by 4.6%
Product innovation will ensure the future survival of PMI
Cancer cash plans and hybrid policies are growing in popularity
Chartis entered the market with a £1m advertising campaign
Chartis spent £1m on marketing its new health insurance proposition
Total PMI GEP will continue to grow throughout the forecasting period
The PMI market is expected to grow in 2010
The group PMI market will continue to grow throughout the forecasting period
Table of Contents
Table of figures
Table of tables
Market Context
Introduction
PMI insurers have had a turbulent year as a result of the downturn
The recession appears to have taken its toll on the PMI market
The group PMI market suffered significantly in 2009
Group PMI’s sensitivity to the wider economic climate was evident
Price inflation is a challenge for retaining individual PMI subscribers
Competition is high within the group sector, while employers are scaling back their PMI budget
Competitive but realistic pricing within the group sector is crucial
UK PMI group business declined by 3% in gross earned premiums
Individual and group subscribers are falling
Individual and group PMI subscribers shrunk by 5% in 2009
The total number of people covered by PMI decreased by 4.6%
Rising claims costs are forcing price increases in order to maintain profits
The increase in group PMI premium rates was below the rate of claims inflation
Insurers are focusing on controlling medical cost inflation
Medical costs are shooting up every year
Insurers have adopted many ways to manage medical inflation
There are three main ways to lower claims costs
Insurers can also try to get a better deal by using hospital networks and managed care
Shared responsibility for claims bills could help manage costs
Attracting new customers via lower premium prices can be achieved by a variety of means
Healthy lifestyle options and targeted benefits can lower PMI rates
Modular policies are designed for customers seeking different levels of cover
Most of the big insurers offer online discounts to entice new customers
Market sentiment is that the NHS funding gap may prompt interest in alternative healthcare options
Market sentiment is that the 1% increase in IPT will not significantly affect PMI uptake
Only 15% of the adult population have a PMI policy
Providers should look to tap 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
Product innovation will ensure the future survival of PMI
Cancer cash plans and hybrid policies are growing in popularity
Cash plans are becoming an appealing alternative to PMI
Marketing and Distribution
Introduction
Chartis entered the market with a £1m advertising campaign
Chartis spent £1m on marketing its new health insurance proposition
Most providers are using one of two clear media strategies
Simplyhealth is making a big push through advertising in 2010
Simplyhealth now includes the HSA, BCWA, LHF, HealthSure and Totally Active brands
Simplyhealth is successfully building brand awareness in the market
Aggregators are increasing their presence in the PMI market
PMIPartners introduced is new individual PMI aggregator website
MoneySupermarket.com also began comparing PMI policies over the past year
Most individual PMI policies are sold direct
PMI policies are predominantly arranged via an employer or direct with an insurer
A direct strategy is key to winning customers aged over 60
Interest in buying PMI declines with age
Consumers in the mid and upper income bands are the core market for PMI
Competitive Dynamics
Introduction
Bupa, PruHealth and Munich Re gained market share in 2009
Bupa’s market share increased by 0.3 percentage points to 44.7% in 2009
PruHealth’s business grew by over 18%
Munich Re’s market share grew by one percentage point
BUPA, AXA, Aviva, Standard Life and WPA remain the top five competitors
BUPA, AXA and Aviva controlled 81.2% of the market in 2009
Standard Life is the fourth largest PMI provider in the UK
All of the top 10 PMI insurers have a presence in the individual market
National Friendly and Chartis have a different PMI proposition from the mainstream
National Friendly’s PMI proposition combines PMI with cash plan benefits and a deposit account
Individual comprehensive medical cover for adults starts from just £40 per person
The business proposition also includes dental and optical treatments
Chartis Direct’s Health Choice offers a competitive premium rate
Aviva has led the way for innovation through its cheaper and more flexible product range
Aviva’s Healthier Solutions offers higher flexibility
Speedy Diagnostics is another example of a new low-cost PMI policy
Future Decoded
Introduction
Recovery in the PMI market will depend on the health of the economy
The base scenario assumes a slow but steady recovery in the UK economy
Total PMI GEP will continue to grow throughout the forecasting period
The PMI market is expected to grow in 2010
The group sector is expected to see higher growth than the individual market
The group PMI market will continue to grow throughout the forecasting period
The growth of the individual PMI market will still depend on premium prices
Subscriber numbers will fall for individual but increase for group
Premium rates are expected to increase throughout the forecast period
The number of individual subscribers is expected to fall throughout the forecast period
The number of group subscribers is expected to remain static in 2010 and resume growth from 2011
Appendix
Definitions
Further reading
Ask the analyst
Datamonitor consulting
Disclaimer
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