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

Published: Mar, 2014 | Pages: 63 | Publisher: Timetric
Industry: Insurance | Report Format: Electronic (PDF)


Synopsis
 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 

Summary
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.   
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  
Reason 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

 1 Executive Summary 
2 Introduction 
2.1 What is this Report About? 
2.2 Definitions 
2.3 Methodology 
3 Market Alysis 
3.1 Market Size 
3.1.1 Penetration and density 
3.2 Claims 
3.2.1 Claims review 
3.2.2 Claims outlook 
3.3 Market Drivers 
3.4 Market Outlook 
3.5 Distribution Channels 
3.5.1 Distribution outlook 
4 Competitive Landscape 
4.1 Profitability 
4.1.1 Investment returns 
4.1.2 Profitability outlook 
4.2 Review - The Best Performers of 2012 
4.3 Product Innovation 
4.4 Private Medical Insurance - SWOT Alysis 
5 Porter's Five Forces Alysis 
5.1 Bargaining Power of Suppliers: High
5.2 Bargaining Power of Buyers: Medium 
5.3 Barriers to Entry: Medium 
5.4 Intensity of Rivalry: Medium to High 
5.5 Threat of Substitution: High 
6 Deals 
6.1 Axa Signs Broker Deal 
6.2 Bupa Creates Global Insurance Network 
6.3 Bupa Extends Deal with UK Sport 
6.4 Aviva Partners with Chartered Society of Physiotherapy 
6.5 Prudential Continues Sponsorship of Sporting Events
7 News
7.1 UK Expats Lose Free Healthcare Access 
7.2 Aviva Release Cancer Claims Statistics 
7.3 Adviser Roadshows to Garner Sales Opportunities 
7.4 Patient Records Obtained by Actuarial Institute 
7.5 Health Insurance High on Employees' Wish Lists 
7.6 Aviva Wins Health Insurance Awards 
7.7 Government Consults on Visitor Medical Insurance Requirements 
7.8 Iugural Advisory Board for PruHealth Scheme 
8 Regulation and Compliance 
8.1 Recent Changes 
8.1.1 Health and Social Care Act 2012 
8.2 Upcoming Regulations 
8.2.1 Solvency II 
9 Macroeconomic Backdrop 
9.1 Real GDP Growth 
9.2 Labor Market Conditions 
9.3 Interest Rates 
9.4 Demographics 
10 Company Profiles 
10.1 Aviva Plc - Company Overview 
10.1.1 Aviva Plc - key facts 
10.1.2 Aviva Plc - main products 
10.1.3 Aviva Plc - main competitors 
10.1.4 Aviva Plc - key employees 
10.2 Axa UK Plc - Company Overview 
10.2.1 Axa UK Plc - key facts 
10.2.2 Axa UK Plc - main products 
10.2.3 Axa UK Plc - main competitors 
10.2.4 Axa UK Plc - key employees 
10.3 Bupa Insurance Ltd - Company Overview 
10.3.1 Bupa Insurance Ltd - key facts 
10.3.2 Bupa Insurance Ltd - main products 
10.3.3 Bupa Insurance Ltd - main competitors 
10.3.4 Bupa Insurance Ltd - key employees 
10.4 Chubb Insurance Company of Europe SE - Company Overview 
10.4.1 Chubb Insurance Company of Europe SE - key facts 
10.4.2 Chubb Insurance Company of Europe SE - main products 
10.4.3 Chubb Insurance Company of Europe SE - main competitors 
10.4.4 Chubb Insurance Company of Europe SE - key employees 
10.5 Cig Life Insurance Company of Europe SA-NV - Company Overview 
10.5.1 Cig Life Insurance Company of Europe SA-NV - key facts 
10.5.2 Cig Life Insurance Company of Europe SA-NV - main products 
10.5.3 Cig Life Insurance Company of Europe SA-NV - main competitors 
10.5.4 Cig Life Insurance Company of Europe SA-NV - key employees 
10.6 Exeter Friendly Society Ltd - Company Overview 
10.6.1 Exeter Friendly Society Ltd - key facts 
10.6.2 Exeter Friendly Society Ltd - main products 
10.6.3 Exeter Friendly Society Ltd - main competitors 
10.6.4 Exeter Friendly Society Ltd - key employees 
10.7 Great Lakes Reinsurance (UK) Plc - Company Overview 
10.7.1 Great Lakes Reinsurance (UK) Plc - key facts 
10.7.2 Great Lakes Reinsurance (UK) Plc - main products 
10.7.3 Great Lakes Reinsurance (UK) Plc - main competitors 
10.7.4 Great Lakes Reinsurance (UK) Plc - key employees 
10.8 Prudential Plc - Company Overview 
10.8.1 Prudential Plc - key facts 
10.8.2 Prudential Plc - main products 
10.8.3 Prudential Plc - main competitors 
10.8.4 Prudential Plc - key employees 
10.9 Simplyhealth Group Ltd - Company Overview 
10.9.1 Simplyhealth Group Ltd - key facts 
10.9.2 Simplyhealth Group Ltd - main products 
10.9.3 Simplyhealth Group Ltd - main competitors 
10.9.4 Simplyhealth Group Ltd - key employees 
10.10 Western Provident Association - Company Overview
10.10.1 Western Provident Association - key facts 
10.10.2 Western Provident Association - main products 
10.10.3 Western Provident Association - main competitors
10.10.4 Western Provident Association - key employees 
11 Statistics 
11.1 Review Period: 2008-2012 
11.2 Forecast Period: 2013-2017 
12 Appendix 
12.1 Methodology 
12.2 Contact Timetric 
12.3 About Timetric 
12.4 Timetric's Services 
12.5 Disclaimer


List of Tables
Table 1: Insurance Industry Definitions 
Table 2: UK Private Medical Insurance - Market Summary (GBP Thousand), 2008-2012 
Table 3: UK Private Medical Insurance - Market SWOT Alysis 
Table 4: Recent and Upcoming Regulatory Changes 
Table 5: Aviva Plc, Key Facts 
Table 6: Aviva Plc, Main Products 
Table 7: Aviva Plc, Key Employees 
Table 8: Axa UK Plc, Key Facts 
Table 9: Axa UK Plc, Main Products 
Table 10: Axa UK Plc, Key Employees 
Table 11: Bupa Insurance Ltd, Key Facts 
Table 12: Bupa Insurance Ltd, Main Products 
Table 13: Bupa Insurance Ltd, Key Employees 
Table 14: Chubb Insurance Company of Europe SE, Key Facts
Table 15: Chubb Insurance Company of Europe SE, Main Products 
Table 16: Chubb Insurance Company of Europe SE, Key Employees 
Table 17: Cig Life Insurance Company of Europe SA-NV, Key Facts 
Table 18: Cig Life Insurance Company of Europe SA-NV, Main Products
Table 19: Cig Life Insurance Company of Europe SA-NV, Key Employees 
Table 20: Exeter Friendly Society Ltd, Key Facts 
Table 21: Exeter Friendly Society Ltd, Main Products 
Table 22: Exeter Friendly Society Ltd, Key Employees 
Table 23: Great Lakes Reinsurance (UK) Plc, Key Facts 
Table 24: Great Lakes Reinsurance (UK) Plc, Main Products 
Table 25: Great Lakes Reinsurance (UK) Plc, Key Employees 
Table 26: Prudential Plc, Key Facts 
Table 27: Prudential Plc, Main Products 
Table 28: Prudential Plc, Board of Directors
Table 29: Simplyhealth Group Ltd, Key Facts 
Table 30: Simplyhealth Group Ltd, Main Products 
Table 31: Simplyhealth Group Ltd, Key Employees 
Table 32: Western Provident Association, Key Facts 
Table 33: Western Provident Association, Main Products 
Table 34: Western Provident Association, Key Employees 
Table 35: Private Medical Insurance (GBP Thousand), 2008-2012 
Table 36: Private Medical Insurance (GBP Thousand), 2013-2017