Table of Contents
Issues in the Market
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- Key issues examined
- Market definitions
- Abbreviations
Insights and Opportunities
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- Tap into latent demand and expand the market fivefold
- Benefits are worth stressing
- See clearly
- Online health advice
- Target SMEs, grow the corporate sector
Market in Brief
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- A fairly small market, but with much potential
- A number of factors give fresh impetus to the market
- Individual and employee-paid policies represent the bulk of in-force business
- Providers managing claim costs well, given the sharp rise in their volume…
- …and have successfully diversified into new areas
- One organisation controls nearly half the market
- Most HCPs are sold through direct channels
- The main findings of Mintel’s consumer survey
- Results show a healthy subscriber base
- Dental and optical benefits top the rankings
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- Figure 1: HCP benefits in order of popularity, by HCP subscribers (illustration), July 2007
- Potential to increase HCP penetration fivefold
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- Figure 2: Potential size of the HCP subscriber base (illustration), July 2007
Fast Forward Trends
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- Trend 1: Play ethic
- Definition
- Context
- Market implications
- Trend 2: Binge On
- Definition
- Context
- Market implications
- Trend 3: ‘Holistier’ than Thou
- Definition
- Context
- Market implications
Broader Market Environment
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- Key points
- Slower income growth will drive demand for affordable healthcare
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- Figure 3: Total PDI, consumer expenditure and PDI per capita, at constant 2003 prices, 2003-12
- Implication and opportunity
- Household spend on healthcare rises by a fifth in just three years
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- Figure 4: Household expenditure on healthcare and hospital services, by component, 2005/06
- Implication and opportunity
- Reduced NHS investment post-2008
- The impact of changing lifestyles and working patterns
- Extending patient choice
- Implication and opportunity
- The SME market
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- Figure 5: Number of private sector enterprises, employees and turnover – UK, start 2006
- Implication and opportunity
- Strong demand for health cover among employees
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- Figure 6: Top ten company benefits and ten most desired, January 2007
- Weighing up the costs
- Implication and opportunity
- Diversifying into new markets: occupational health
Internal Market Environment
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- Key points
- Claims ratio remains within predictable parameters
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- Figure 7: Claim amounts incurred and claims as a proportion of contribution income earned, 2000-06
- Implication
- Dental treatment accounts for the largest proportion of claims
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- Figure 8: Proportional distribution of claims (volume and value), by benefit category, 2005 and 2006
- Fewer visit the dentist post-April 2006
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- Figure 9: Active patient registrations in England and Wales, 2003-06
- All change
- Implication and opportunity
- New NHS price bands
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- Figure 10: Dental charges in England, 2007
- Two thirds of adults wear specs or lenses
- Voucher entitlements
- Millions get their eyes tested each year
- Sight test fees
Competitive Context
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- Key points
- Dental plans appear more popular than cash plans…
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- Figure 11: Penetration of HCPs and related health insurance products, July 2007
- …with demand boosted by the decline in NHS dentistry
- New affordable PMI poses threat to cash plans
- PMI: a market revived
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- Figure 12: Number of PMI subscribers, people covered and gross earned premiums, 2002-07
- Implication and opportunity (or threat?)
- Healthy demand for OH services is a positive trend
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- Figure 13: Size of the UK market for occupational health provision, 2002-06
Strengths and Weaknesses
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- Figure 14: HCPs – SWOT analysis, 2007
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Who’s Innovating?
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- Providers improve intermediary support
- Corporate sector sees greatest innovation
- Greater flexibility
- The emergence of ‘hybrid’ health plans
- Innovation in the individual market
- Promoting active lifestyles
Trade Perspective
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- About the respondents
- Corporate sector shows promise
- Product awareness could be improved, but at cost
- HCP and PMI: not converging but complementing
- Link-up with retailers worth another go?
- Market prospects?
Market Size and Forecast
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- Key points
- HCP market at a crucial turning point
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- Figure 15: Number of HCP subscribers, people covered and contribution income earned, 2002-07
- Contributing factors to recent decline
- A fresh approach needed?
- The corporate sector represents a silver lining
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- Figure 16: Proportional distribution of HCP subscriber base, by sector, 2006
- Competitive pressures depress premium inflation
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- Figure 17: Average HCP premium, by sector, 2002-07
- Implication
- Standard scenario predicts steady growth
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- Figure 18: Forecast of HCP subscribers and contribution income earned – standard scenario, 2007-12
- Note about the forecast
- Positive scenario assumes faster premium growth
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- Figure 19: Forecast of HCP subscribers and contribution income earned – positive scenario, 2007-12
- Factors incorporated
Market Share
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- Key points
- Contraction in supply
- Not-for-profit organisations dominate the HCP market
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- Figure 20: HCP provider rankings, by contribution income, 2005 and 2006
- Market leader, Simplyhealth controls almost half the market
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- Figure 21: Illustration of HCP providers’ market shares, 2005 and 2006
Companies and Products
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- Simplyhealth Group
- Westfield Health
- BHSF
- Medicash
Brand Communication and Promotion
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- Key points
- Total industry adspend stabilises…
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- Figure 22: Total advertising expenditure on HCPs and other health insurance products, 2002/03-2006/07
- …although many HCP providers cut back on advertising
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- Figure 23: Advertising expenditure by selected HCP providers, 2004/05-2006/07
- Providers prefer to advertise in the press
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- Figure 24: Distribution of advertising expenditure for selected HCP providers, by media type, 2006/07
- HSA’s ‘crazy’ ad
- Event sponsorship and charitable work
Channels to Market
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- Key points
- Direct sales dominate
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- Figure 25: Proportional distribution of HCP sales, by channel, 2005 and 2006
- Implication and opportunity
- The workplace remains an important marketing channel
- Online advances
The Consumer – Product Penetration
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- Key points
- Survey background
- Low penetration of health cash plans
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- Figure 26: Ownership of HCPs and other related products, July 2007
- Assessing penetration: a note about the data
- Significant product overlap
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- Figure 27: Ownership of HCPs and other related products – cross-analysis, July 2007
- Implication
- Are health cash plans losing out to dental plans?
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- Figure 28: Trends in ownership of HCPs and other health products, 2003-07
- Implication and opportunity
- The typical HCP subscriber is aged 35-64
- Implication and opportunity
- CHAID analysis
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- Figure 29: Target groups identified for health insurance products, July 2007
- Implication and opportunity
The Consumer – Health Status and Health Needs
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- Key points
- HCP subscribers are very health-conscious
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- Figure 30: Health status, by ownership of HCPs and related products, July 2007
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- Figure 31: Health status of HCP subscribers versus total sample (illustration), July 2007
- Over-55s watch their diet
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- Figure 32: Health status, by gender and age, July 2007
- HCP subscribers most likely to use the services of a health professional
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- Figure 33: Health check-ups and other experiences, by ownership of HCPs and related products, July 2007
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- Figure 34: Health check-ups and other experiences, by ownership of HCPs and related products, July 2007
- Implication and opportunity
- Why are men less likely to go to the doctors?
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- Figure 35: Health check-ups and other experiences, by gender, July 2007
- Implication and opportunity
- Two fifths of over-65s have not visited a dentist in the past two years
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- Figure 36: Health check-ups and other experiences, by age, July 2007
- Implication and opportunity
- Londoners least likely to visit a GP or a dentist
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- Figure 37: Health check-ups and other experiences, by region, July 2007
- Implication and opportunity
- Difficulty registering with NHS dentist is a likely catalyst for taking out an HCP or dental plan
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- Figure 38: Proportion of adults who have had difficulty accessing health advice or treatment, by ownership of HCPs and related products, July 2007
- Implication and opportunity
- 25-34-year-olds face problems accessing NHS dental treatment
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- Figure 39: Proportion of adults who have had difficulty accessing health advice or treatment, by gender and age, July 2007
- Londoners are over 50% more likely to say they’ve had problems registering with a GP
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- Figure 40: Proportion of adults who have had difficulty accessing health advice or treatment, by region, July 2007
The Consumer – Popularity of Benefits
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- Key points
- Cashback on dental bills is top attraction
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- Figure 41: HCP benefits in order of popularity, by ownership of HCPs and related products, July 2007
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- Figure 42: HCP benefits in order of popularity, by HCP subscribers only (illustration), July 2007
- Implication and opportunity
- Ranking of benefits vary according to gender and age
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- Figure 43: Top six most popular HCP benefits, by gender and age, July 2007
- Implication and opportunity
The Consumer – Targeting Opportunities
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- Key points
- One in two think HCPs are good value…
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- Figure 44: Agreement with statements about HCPs (illustration), July 2007
- …but not all existing plan holders agree
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- Figure 45: Agreement with statements about HCPs, by ownership of HCPs and related products, July 2007
- Those who’ve had trouble accessing health services look more favourably on HCPs
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- Figure 46: Agreement with statements about HCPs, by difficulty accessing health advice or treatment (repertoire), July 2007
- C2s show greatest interest
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- Figure 47: Agreement with statements about HCPs, by gender and socio-economic group, July 2007
- Lowest awareness is among the youngest and oldest age groups
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- Figure 48: Agreement with statements about HCPs, by age, July 2007
- Implication and opportunity
- HCP market could quintuple, if all prospects are converted
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- Figure 49: Potential size of the HCP subscriber base (illustration), July 2007
- HCP targets (18%)
- Complementary medicine appeals much more to HCP targets than existing subscribers
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- Figure 50: HCP benefits in order of popularity, by existing HCP subscribers and potential targets, July 2007
- Implication and opportunity
- The health status of HCP targets is not as good as existing subscribers…
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- Figure 51: Health status, by existing HCP subscribers and potential targets, July 2007
- Implication and opportunity
- …and they’re much less likely to have had recent health, dental and eye check-ups
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- Figure 52: Health check-ups and other experiences, by existing HCP subscribers and potential targets, July 2007
- HCP targets are more likely to have experienced difficulty registering with a dentist and a GP
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- Figure 53: Proportion of adults who have had difficulty accessing health advice or treatment, by existing HCP subscribers and potential targets, July 2007
- Implication and opportunity
- Further analysis
Product Penetration – Detailed Demographics
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- Figure 54: Ownership of HCPs and related products, by gender, age, socio-economic group, marital status, lifestage, Mintel’s Special Groups and working status, July 2007
- Figure 55: Ownership of HCPs and related products, by tenure, gross annual household income, region and ACORN category, July 2007
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- Figure 56: Ownership of HCPs and related products, by new technology usage, newspaper readership, commercial TV viewing and supermarket usage, July 2007
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Profile of the Target Group – Detailed Demographics
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- Figure 57: Profile of the target group versus the total sample, by gender, age, socio-economic group, marital status, lifestage, Mintel’s Special Groups and working status, July 2007
- Figure 58: Profile of the target group versus the total sample, by tenure, gross annual household income, region and ACORN category, July 2007
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- Figure 59: Profile of the target group versus the total sample, by new technology usage, newspaper readership, commercial TV viewing and supermarket usage, July 2007
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