The health of the nation is a perennial pre-occupation in the UK, with endless debate as to how best to run the NHS. The current trend has been for an ever-growing involvement between private and public healthcare providers, with the NHS making extensive use of private hospitals. Where, however, does this leave those offering private medical insurance? Sales in recent years have been fairly static, particularly in the individual sector, and this report examines the way in which providers are seeking to address the difficult market conditions.

The key issue in the market is how best to deal with spiralling medical inflation, caused by an ageing population and a wide range of new and relatively costly medical procedures and drugs. The most recent trend has been to offer low-cost policies with certain conditions excluded from cover, while some insurers are taking a more innovative approach, actively encouraging policyholders to take greater responsibility for their own health and fitness. Maintaining control of premium levels is the biggest challenge facing the industry – are stripped-down policies the way forward, or do they risk devaluing the core concept behind the product?

In order to understand the potential for this market, Mintel examines the broader issues facing providers, with the ageing population being perhaps the most fundamental change that must be managed. Internal market factors are also considered, particularly the growing interaction between private and public healthcare operators, and the threat posed by an improving NHS. On the supply side, Mintel examines the new products that have been launched in response to changing market conditions, while the demand for private medical insurance is investigated through in-depth and exclusive consumer research.