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The market is segmented by Product Type (Private Medical Insurance, Healthcare Cash Plans, Dental Insurance Plans), by Term of Coverage (Short-term, Long-term), by Procurement Type (Self-pay Health Coverage, Employee-sponsored Health Coverage) - Growth, Trends, and Forecast (2019-2024)
The health and medical insurance market is expected to register a healthy CAGR of 3.2%, during the forecast period (2019-2024).Health cover has become the highest public priority. Healthcare is most frequently cited, by voters, as the most important aspect of government spending. The NHS has, thus, become a protected department, with the awareness of all political parties about NHS spending on the overall health coverage. According to the data published by the Association of British Insurers (ABI), 1.7 million people in the United Kingdom had private medical insurance (PMI).
A complete background analysis of the UK health insurance industry, including an assessment of the national health accounts, economy, and emerging market trends by segments, significant changes in market dynamics, and market overview, is covered in the report.
|BY PRODUCT TYPE|
|BY PROCUREMENT TYPE|
|Self-pay Health Coverage|
|Employee Sponsored Health Coverage|
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Private Medical Insurance – medical cover subscribers have grown by more than 2%, following a flat demand in the period of 2012-2014. Total spending on the UK private medical cover, which includes insured and self-insured healthcare trusts, grew by 2.8% in 2015. Premium income generated from the sales of insured policies grew by 2.1%, leading to a rise in insurance gross margins to 26.7%, in comparison to 25.9% in 2014. In the future years, the rising taxes and Brexit may pose a tough time for private insurance providers.
Significant developments in premiums belie the underlying trends in demand. Factors driving the apparent shift in attitudes include improved levels of satisfaction with NHS, increased public healthcare spending, and deterioration in labor market conditions. The consumer shift away from private medical insurance is unlikely to be fully reversed.
A recent economic recovery may improve wage and employment conditions wherein NHS reforms are expected to push for the role of the private healthcare and insurance sector, while UK's evolving demographic profile may increase the strain on the public healthcare system.
The current volatile economic scenario does not prescribe continued growth in the category. However, the demand for lower-cost policy coverage has propelled growth in the popularity and availability of cheaper healthcare cash plans, and self-pay options for one-off treatments.
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NHS has always ensured that the United Kingdom maintains an extensive social security system. The UK economy has a problem due to its present political crisis. However, it possesses a robust economic growth, with low inflation and lower unemployment rates as huge plus. Employers consider health and wellness as a prime objective in providing health benefits to their employees. In the United Kingdom, up to 45% of the employers aim to include health and well-being of employees in their company goals, within three years of the formation of the company. With rising income producing employers and growth in the awareness of the extensive health coverage offered, this segment is expected to exhibit prominent growth during the forecast period.
UK employees receive fundamental health and retirement coverage via government programs, and gain wide access to a well-established financial services industry, which offers consumers a broad set of choices in private health care, insurance, and investment products. Due to the availability of these resources, workers in the United Kingdom express far less concern than US employees, regarding financial issues ranging from having enough money to live on (44% of UK employees, as compared to 59% in the US), to being able to afford relevant health insurance for self and one’s family (28% in the United Kingdom and 57% in the United States).
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In spite of being a concentrated market, lack of competition among private hospitals has constrained insurers the bargaining power, thereby, resulting in inflated claims costs. Coupled with the reduction in customer numbers, this has been the biggest driver for premium growth, as insurers responded to the burden on profitability by raising prices for customers.
The consumer shift away from private medical insurance is unlikely to be fully reversed. Favorable forces may support a modest CAGR of 2% for gross written premiums, over the forecast period (2013–2017).
A recent recovery in economic growth may improve wage and employment conditions in the United Kingdom. Also, NHS reforms are expected to advance the role of private healthcare in the insurance sector. On the other hand, UK’s evolving demographic profile may increase the strain on the public healthcare system.
Bupa continues be the market leader in the UK health and medical insurance market, holding more than 50% of the market share. Its annual revenue from the health insurance business segment accounted for more than 80%, in 2017.
The market concentration is ‘high’, as it is dominated by four companies, namely, BUPA, Axa PPP, Aviva, and Prudential, which contributed a cumulative market share of greater than 90%, in 2016.
1.1 Scope of the Study
1.2 Key Deliverables of the Study
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. GOVERNMENT REGULATIONS AND INITIATIVES
4.1 Brief on Health Insurance Industry Regulation in the United Kingdom - Role of NHS UK in the Healthcare Delivery
4.2 Insights on Latest Healthcare Policy Changes and their Effect on the Overall Health Spending in the United Kingdom
4.3 Effect of Brexit on Health Insurance Coverage in the United Kingdom
5. INDUSTRY DYNAMICS AND INSIGHTS
5.1 Brief on Health Insurance Premiums and Study on the Effect of Medical Trend Rate on Health Plans
5.2 Insights on UK Social Health Insurance (SHI) and its Impact on the Overall Health Coverage of UK Citizens and the Preference for Private Medical Insurance (PHI) over SHI
5.3 Industry Attractiveness - Porter's Five Forces Analysis
5.4 Value Chain/Supply Chain Analysis
6. MARKET SEGMENTATION
6.1 BY PRODUCT TYPE
6.1.1 Private Medical Insurance (PMI)
18.104.22.168 Individual Policy Coverage
22.214.171.124 Group Policy Coverage
6.1.2 Healthcare Cash Plans
126.96.36.199 Individual Policy Coverage
188.8.131.52 Group Policy Coverage
6.1.3 Dental Insurance Plans
184.108.40.206 NHS-backed Capitation Plan
220.127.116.11 Private Capitation Plan
6.2 BY TERM
6.3 BY PROCUREMENT TYPE
6.3.1 Self-pay Health Coverage
6.3.2 Employee Sponsored Health Coverage
7. COMPETITIVE LANDSCAPE
7.1 Overview (Market Concentration and Major Players)
7.2 Company Profiles
7.2.2 AXA PPP
7.2.3 PT Astra Aviva Life
7.2.5 Cigna Life Insurance Company of Europe SA-NV
7.2.6 Simplyhealth Group Ltd
7.2.7 WPA - Western Provident Association
7.2.8 Vitality Health
8. FUTURE GROWTH PROSPECTS OF THE UK HEALTH INSURANCE INDUSTRY
9.1 United Kingdom Public Health Insurance Statistics - SHI
9.2 Trend analysis of Per Capita Health Expenditure in United Kingdom
9.3 Statistics on Age-wise Health Insurance Coverage
10. DISCLAIMER AND ABOUT US
** Subject to Availability