“Penetration of private medical insurance is at an all-time low. Just 14% of consumers say that they are covered by an insurance policy. However, 40% of the adult population agree that ‘private medical insurance gives a standard of care that the NHS can’t match’, showing that people can see the value of the product. As economic growth continues and the market begins to recover, the challenge for providers is to help consumers see this higher standard of care as essential for their well-being, and not an unnecessary luxury”
The private medical insurance market experienced significant difficulties in the aftermath of the financial crisis. As both businesses and consumers cut back on non-essential spending, the already high costs of premiums coupled with consumers’ difficulty in identifying the added value of private medical insurance meant that interest in the product declined and the market contracted.
In 2014, economic growth is strong, although consumers still face low wage growth and are increasingly likely to turn to self-employment. At the same time, the NHS is under pressure from rising demand, and interest in healthcare amongst young and health-invested consumers is booming. The healthcare needs of consumers are also shifting, as demand for 24/7, technologically-enabled care increases, especially in relation to routine services, and demand for private non-routine services decreases.
This report examines the broader trends affecting the private healthcare market, and examines the way in which this has affected the value and volume of policy sales. This is supplemented by in-depth independently commissioned consumer research examining ownership of PMI, use of a range of healthcare services, and attitudes towards private healthcare.
