Private medical insurers are continuing to experience a decline in customers. Both the number of subscribers and the number of people covered have slipped year on year since 2008. Suppressed disposable income and rising prices are keeping the product out of reach for many. This has kept the market from recovering in line with the wider economy. A surprise increase in insurance premium tax from November 2015 will make it even more difficult to market the product to new customers.

The NHS has managed to maintain a good level of customer satisfaction, although there are indications it is starting to struggle under pressure from rising demand for some services. Some urban areas of the country, such as London, are facing a capacity crunch as the population increases. Waiting lists are growing and difficulty in accessing services is the principal reason for people to look elsewhere. Insurers are adapting to the growing importance placed on primary care with innovations such as video GP appointments.

Wearable technology also represents an opportunity for insurers to amass data on customers and come up with a strategy to open the door to new customers without endangering already tight profit margins. With the market dominated by a few major players, these providers will be in a strong position to improve profitability as the data-driven future of the market unfolds.

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.

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