Table of Contents
Introduction and Abbreviations
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- History
- Understanding the consumer
- Key sources
- Market definitions
- Global information and research
- Consumer research
- ACORN
- Abbreviations
Premier Insight
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- Twelve budgets are better than one
- Vouchers for referrals
- More value for money?
- Want cash?
- Paying people to take care of themselves
- The ‘optidental’ plan?
Executive Summary
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- HCP renaissance…almost
- An evolving product
- Increased intermediary involvement
- Spend, spend, spend on healthcare
- Claims increase as contributions increase
- Not-for-profits dominate the market
- Product innovation boosts average premium
- Largest provider spends £5.3 million on advertising
- The consumer vis à vis HCPs
- To expand…or to reduce?
- Typologies
- Ready, set…grow!
Market Drivers
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- PDI and consumer expenditure set to continue to increase
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- Figure 1: PDI and consumer expenditure at current prices, 1995-2009
- £2 billion spent on spectacles
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- Figure 2: Components of household expenditure on healthcare products and services, 2002-03
- Competition or complement?
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- Figure 3: Number of persons covered by corporate PMI, Individual PMI and HCPs, 1995-2003
- NHS voucher scheme
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- Figure 4: The number of optical vouchers reimbursed by PCTs, England, 1993-2004
- Ex-specs-ive
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- Figure 5: Average price paid for spectacles, 1999-2004
- The privatisation of dental care
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- Figure 6: Guide to private dental charges, May 2004
- The pressure is on
Market Size and Trends
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- Contribution income grows despite falling number of contributors
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- Figure 7: HCP contributor numbers, persons covered, and earned income, 1999-2004
- Claims keep up with contributions
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- Figure 8: Cash benefits paid versus contribution income earned, 1995-2004
- Hospital inpatient claims outstrip dental and optical claims in value
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- Figure 9: Proportion of total value of HCP benefits paid, by benefit category, 2003
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- Figure 10: Distribution of HCP claims, 2003
Key Players, Pricing, and Product Development
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- Not-for-profit providers dominate the healthcare cash plan market
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- Figure 11: HCP market share, by value, 2004
- Can’t beat ’em? Join ’em!
- ‘One size fits all’ approach has fallen by the wayside
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- Figure 12: Sample of lowest HCP premiums and coverage, November 2004
- The average premium climbs higher
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- Figure 13: Average yearly income per HCP contributor, 1993-2004
- Connecting with the right people
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- Figure 14: Specially targeted HCPs, 2005
- Plans expand to include all and sundry
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- Figure 15: Examples of HCP benefit expansion
Distribution and the Internet
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- Direct retailing vs intermediary sales
- HCPs in the workplace
- The Internet – a possible distribution channel
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- Figure 16: Likely channel for arranging HCP, February 2005
- Pre-/no family consumers most interested in purchasing HCPs online
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- Figure 17: Preferred distribution channel of HCPs, by gender, age, socio-economic group and lifestage, February 2005
Advertising and Promotion
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- Leading provider is leading advertiser
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- Figure 18: Advertising expenditure on HCPs by the top three advertisers, by outlet, January 2004-February 2005
- Vouchers are commonplace in HCP promotion
Consumer Financial Activity
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- Activity levels are down
- Relationship with the main financial services providers (MFSP)
- Saving and investment activity is set to slow
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- Figure 19: Savings, investment, borrowing and debt repayment – consumers’ expected activity, September 2003-December 2004
- Above-average activity from those aged 40-49
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- Figure 20: Expected financial activity, by socio-demographic and income groups, December 2004, and average for the last 12 Quarters
- Consumers are placing a deposit, but not much else
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- Figure 21: Leading financial activities planned in the next 6 months, December 2003-December 2004
- Mortgage demand reflects slowdown in the property sector
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- Figure 22: Intended mortgage and property purchase activity, June 2002-December 2004
- Position primarily unchanged among MFSPs
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- Figure 23: Leading main financial services providers: Market shares, December 2003-December 2004
- RBS set to benefit from increased mortgage activity
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- Figure 24: Saving, investment and lending, market sizes by expected customer demand and brand leaders (overall % intending to undertake activity in brackets), December 2004
- RBS customers remain the most active – NatWest can also expect high business levels
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- Figure 25: Activity levels of main financial providers’ customer bases, December 2004
The Consumer and Product Ownership
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- One in ten are covered by a HCP
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- Figure 26: Penetration of health/protection products, February 2005
- Penetration of HCPs is highest among C2s
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- Figure 27: Penetration of health/protection products, by gender, age, socio-economic group and lifestage, February 2005
- PMI: upmarket medical insurance?
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- Figure 28: Penetration of health/protection products, by working status, gross annual household income and tenure, February 2005
- A role for M&S in the HCP market
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- Figure 29: Penetration of health/protection products by newspaper readership, new technology, daily commercial TV viewing and supermarket usage, February 2005
- Work has bearing on penetration
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- Figure 30: Health and protection product penetration by detailed lifestage, February 2005
- Molar madness
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- Figure 31: Most appealing benefits of HCPs, February 2005
- Resistance to HCPs increases with age
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- Figure 32: Most appealing benefits of HCPs, by gender, age, socio-economic group and lifestage, February 2005
- More affluent consumers interested in specialist consultations
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- Figure 33: Most appealing benefits of HCPs, by working status, gross annual household income and tenure, February 2005
- Dental and optical benefits go together like peas and carrots
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- Figure 34: Compatibility of HCP benefits, February 2005
Consumer Attitudes and Targeting Opportunities
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- One in three has health and protection product
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- Figure 35: Repertoire analysis of health and protection products owned, February 2005
- Middle-aged consumers have bigger repertoire
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- Figure 36: Repertoire analysis of health and protection products, by gender, age and socio-economic group, February 2005
- Mortgage holders want extra protection
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- Figure 37: Repertoire analysis of health and protection products, by working status, gross annual household income and tenure, February 2005
- Identifying cross-selling potential
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- Figure 38: Penetration of health and protection products, by health and protection product owners, February 2005
- Lack of HCP awareness must be overcome
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- Figure 39: Attitudes towards HCPs, February 2005
- The middle-aged are the most concerned
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- Figure 40: Attitudes towards HCPs, by gender, age, socio-economic group and lifestage, February 2005
- Identifying typologies
- The Enthusiastic are truly enthused about health and protection
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- Figure 41: HCP consumer typologies, by product penetration of health and protection products, February 2005
- Who are they?
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- Figure 42: HCP consumer typologies, by gender, age and socio-economic group, February 2005
- Employers crucial in increasing awareness
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- Figure 43: HCP consumer typologies by working status, gross annual household income and tenure, February 2005
- HCPs appeal to families with two earners
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- Figure 44: HCP consumer typologies by detailed lifestage, February 2005
- CHAID analysis
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- Figure 45: CHAID analysis of HCP consumer typologies, February 2005
Industry Views
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- HCP innovation
- The rise of the intermediary
- An essential component of a competitive salary package?
- Internet potential
- Lack of awareness leads to confusion
- PMI: friend or foe?
- General commentary
The Future
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- Moderate growth on the horizon
- Consumer-led development and employer-led development
- Intermediaries
- Open wide…and dig deep
- Claims
- New players
Forecast
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- Figure 46: Forecast of HCP market, by volume and value, in current terms and constant terms, 2004-10
- Factors used in the forecast
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