Private Medical Insurance in the UK, Key Trends and Opportunities to 2017, New Report Launched

Gross written premiums in the private medical insurance category amounted to GBP3.65 billion in 2012, recording growth of 3.2% from 2011, and a compound annual growth rate (CAGR) of 2.47% during the review period (2008–2012).

Favorable developments in premiums belie the underlying trends in demand, however. As a discretionary insurance product, supplementary to free-to-access healthcare through the National Health Service (NHS), the number of private medical policyholders has been subject to a downwards trend since 2006 and hit its lowest level on record in 2012, at 5.6 million. Factors driving the apparent shift in attitudes include improved levels of satisfaction with the NHS, increased public healthcare spending, and deterioration in labor market conditions.

The market for private medical insurance is dominated by four insurers – Bupa, Axa, Aviva and Prudential – which have a combined market share of 92%. Despite this concentrated market, a lack of competition between private hospital operators has restricted insurers’ bargaining power and resulted in inflated claims costs. Coupled with the decline in customer numbers, this has been the biggest driver of premium growth as insurers responded to drags on profitability by raising prices for customers.

The consumer shift away from private medical insurance is unlikely to be fully reversed. Nevertheless, favorable forces will underpin a modest CAGR of 2% for gross written premiums over the forecast period (2013–2017). A recovery in economic growth will improve wage and employment conditions, NHS reforms are expected to advance the role of the private healthcare and insurance sector, while the UK’s evolving demographic profile will increase the strain on the public healthcare system.

Improving economic conditions do not prescribe continued growth in the category, however, as the recession-induced demand for lower-cost policy coverage has spurred an increase in the popularity and availability of cheaper healthcare cash plans and self-pay options for one-off treatments. This new market dynamic threatens to divert customers away from comprehensive, but high-premium private medical insurance policies.

The report provides market analysis, information and insights into the UK private medical insurance insurance business

• It provides a snapshot of market size and market segmentation
• It offers comprehensive analysis of claims, drivers and market outlook
• It analyzes distribution channels
• It offers an overview of deals, news and regulatory developments

Scope

• This report provides market analysis, information and insights into the UK private medical insurance business
• It provides a global snapshot of market size
• It analyses drivers and the outlook for the market
• It provides information on distribution channels
• It covers deals, news and regulatory developments

Reasons To Buy

• Gain an understanding of the UK private medical insurance market size
• Learn about the performance of market drivers and distribution channels
• Understand the competitive landscape in terms of performance, profitability and product innovation
• Find out more on key deals and recent developments in the market

Key Highlights

• Private medical insurance premiums rose by 3.2% in 2012
• Demand shifted away from the private healthcare sector
• Minimal competition among private suppliers has increased costs for insurers
• Competition Commission intervention should begin to alleviate cost constraints
• Premium growth will be sustained, despite opposing forces
• Private medical insurance is under threat from lower-cost alternatives

Spanning Over 63 pages, 36 tables, 19 figures, “Private Medical Insurance in the UK, Key Trends and Opportunities to 2017” report covering the Market Analysis, Competitive Landscape, Porter’s Five Forces Analysis, Deals, News, Regulation and Compliance, Macroeconomic Backdrop, Company Profiles,  Statistics, Appendix. The report covered 10 companies - Aviva Plc, Axa UK Plc, Bupa Insurance Ltd, Chubb Insurance Company of Europe SE, Cigna Life Insurance Company of Europe SA-NV, Exeter Friendly Society Ltd, Great Lakes Reinsurance (UK) Plc, Prudential Plc, Simplyhealth Group Ltd, Western Provident Association.

See more at: http://mrr.cm/Z36

Find other Insurance Reports at : http://www.marketresearchreports.com/insurance 

Find other reports on United Kingdom Market at : http://www.marketresearchreports.com/countries/united-kingdom

For regular industry updates subscribe to our newsletter at: http://www.marketresearchreports.com/subscribe-to-newsletter