2020
9
UK Consumers and Health Insurance (PMI and HCPs) Market Report 2020
2020-11-05T03:03:46+00:00
OX989914
2195
127043
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Report
en_GB
“Prior to the pandemic, virtual healthcare had been pitched as the future of market, but had been slow to take off. COVID-19 has been a trigger for real change, as…

UK Consumers and Health Insurance (PMI and HCPs) Market Report 2020

£ 2,195 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the Consumers and Health Insurance – UK market including the behaviours, preferences and habits of the consumer.

Mintel’s research for this Report shows how the pandemic has had a huge impact on the nation’s health and wellbeing, with an astonishing number of people deterred from seeking the medical help they need. From the start of the outbreak in March to the end of July, a third of UK adults delayed contacting their GP about a new or existing health matter. Separately, more than a quarter put off seeking medical advice in-person, such as visiting A&E, due to concerns about COVID-19. The proportions were even higher among people with health insurance.

Quickly Understand

  • Innovation and competitive strategies in the market?
  • The size of the health insurance market and a five-year forecast for new PMI business?
  • The plans among consumers in regards to PMI/health cash and the types of cover?
  • The impact of COVID-19 on the market and the wellbeing of the adult population?
  • Assessing interest in private healthcare and identifying the most attractive benefits of PMI among the non-insured?

Covered in this report

Health insurance market, health insurance market size, health insurance consumer, health insurance consumer report, health insurance statistics, health insurance data, health insurance analysis and health insurance insights.

Brands included in random order: Bupa UK, AXA PPP Healthcare, Aviva, Vitality, Simplyhealth, WPA, Westfield Health, Health Shield, BHSF, Exeter Friendly Society, HSF Health Plan, Medicash Health, CS Healthcare, Personal Assurance and Sovereign Health.

Expert analysis from a specialist in the field

Written by Sarah Hitchcock, a leading analyst in the Financial Services sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Prior to the pandemic, virtual healthcare had been pitched as the future of market, but had been slow to take off. COVID-19 has been a trigger for real change, as people have had no option but to use alternative channels to F2F. Now, thanks to the accelerated rollout and use of remote services, ‘telehealth’ is seen as the way forward in delivering healthcare
Sarah Hitchcock
Senior Financial Services Analyst

 

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • Impact of COVID-19 on the health insurance market
      • Figure 1: Short-, medium- and long-term impact of COVID-19 on the health insurance market, October 2020
    • The market
    • Market GEP set to contract by 7% over the 2020-21 as a result of the pandemic
      • Figure 2: Forecast chart of PMI gross earned premiums, 2015-25 (prepared on 6 October 2020)
    • A personal PMI policy costs double that of a group policy on a per subscriber basis
    • The average PMI claim is over £2,000
    • Cancer accounts for the largest share of claims incurred
    • Health cash plan market is much smaller in value terms
    • Companies and brands
    • PMI is a heavily consolidated market
      • Figure 3: Estimated market shares of the largest PMI providers, based on gross written premium, 2019
    • HCP providers operate on very tight margins
      • Figure 4: Estimated market shares of the largest HCP providers, based on gross written premium, 2019
    • Pandemic caused major disruption to health services
    • Claims activity fell sharply during the lockdown
    • The consumer
    • 12% of adults have PMI, while 5% have a health cash plan
    • 62% pay for their health insurance themselves
      • Figure 5: Policy payee, July 2020
    • Significant minority of PMI policyholders are unaware exactly what cover they have
      • Figure 6: Types of cover included in policy, July 2020
    • 13% of existing PMI policyholders are not planning to renew cover
      • Figure 7: Attitudes and experiences of policyholders, July 2020
    • Most people interested in health cover are not willing to pay more than £20 a month in premiums
      • Figure 8: Amount willing to pay for health insurance by non-policyholders, July 2020
    • Difficulties accessing healthcare and postponed treatment
      • Figure 9: Experience of adverse effects of COVID-19 on personal health and wellbeing, July 2020
    • COVID-19 has increased people’s willingness to use remote health services
      • Figure 10: Attitudes towards accessing healthcare in the future, July 2020
  3. Issues and Insights

    • Telehealth is here to stay and has the potential to offer health insurers vital cost savings
    • Longer NHS waiting times will boost interest in private healthcare solutions
    • Adopt a holistic approach to health and wellbeing
  4. The Market – Key Takeaways

    • The pandemic brings fresh challenges and opportunities
    • Jobs recession means there will be some loss of corporate subscribers
    • Claims activity will rise steeply once the worst of the crisis is over
    • Huge NHS backlog will see more patients turning to the private sector
  5. Market Size and Forecast

    • Recent shift towards virtual services will prevail, providing fresh opportunities post-crisis
      • Figure 11: Short-, medium- and long-term impact of COVID-19 on health insurance, October 2020
    • PMI gross premiums forecast to decline by 7% over the 2020-21 period
      • Figure 12: Forecast chart of PMI gross earned premiums, 2015-25 (prepared on 6 October 2020)
      • Figure 13: Value of PMI gross earned premiums, 2015-25 (prepared on 6 October 2020)
    • Market drivers and assumptions
      • Figure 14: Key drivers affecting Mintel’s market forecast, 2015-25 (prepared on 6 October 2020)
    • Learnings from the last recession
      • Figure 15: Value of PMI gross earned premiums, 2004-13
    • Forecast methodology
  6. Market Segmentation

    • Corporate PMI schemes account for 75% of all people covered
      • Figure 16: Number of PMI subscribers and people covered, by sector, 2015-19
    • Growth in premium income driven by corporate sector
      • Figure 17: PMI gross earned premiums, by sector, 2015-19
    • In 2019, average personal premium fell for the first time in years
      • Figure 18: Average PMI premium, by sector, 2010-19
  7. Claims Experience

    • Cost of claims rose 4% in 2019…
      • Figure 19: PMI number of claimants, claims incurred and average claim value (ABI members only), 2015-19
    • …while the average claim value for individuals was 59% higher than for corporate subscribers
      • Figure 20: PMI claims incurred and average claim value, by sector (ABI members only), 2015-19
    • Largest share of claims relates to musculoskeletal conditions
      • Figure 21: Proportional distribution of claims incurred and number of claimants, by condition, 2018 and 2019
  8. Other Health Cover Products and Solutions

    • Healthcare trusts offer employers an alternative to corporate PMI
      • Figure 22: Healthcare trusts – number of subscribers, people covered and gross earned premiums, 2015-19
    • Health cash plans can be viewed as both complementary and a competitor product
    • Health cash plan market operates on very low margins
      • Figure 23: Health cash plans – number of subscribers, gross earned premiums and claims incurred, 2017-19
    • Cash plans compete with standalone vision and dental plans
  9. Market Drivers

    • Job losses will reduce the corporate headcount
    • Support measures introduced in place of the furlough scheme are not as generous
    • Certain sectors and age groups more at risk than others
    • Could a hefty COVID-19 spending bill prompt a further increase in IPT?
      • Figure 24: Changes to the standard rate of IPT, 2011 onwards
    • NHS waiting times were already at record high before the crisis
    • Millions face treatment delays and cancellations
    • Further funding needed to tackle backlog of patients waiting treatment
      • Figure 25: NHS England – resource budget (excluding depreciation), in real terms, 2015/16-2020/21
    • Cancer waiting times lengthen
    • New technology helps to improve GP access
  10. Companies and Brands – Key Takeaways

    • Health insurance is a heavily consolidated market…
    • …which is continually subjected to rising cost pressures
    • Telehealth paves the way forward
    • Greater emphasis on mental health and wellbeing services
  11. Market Share

    • Market leader Bupa grew customer numbers in 2019
      • Figure 26: Largest providers of PMI and health cash plans, by premium income, 2018 and 2019
    • Top four control around 95% of the PMI market
      • Figure 27: Estimated market shares of the largest PMI providers, based on gross written premium, 2019
    • CS Healthcare to merge with Bupa
    • Simplyhealth reports growth in corporate business
      • Figure 28: Estimated market shares of the largest HCP providers, based on gross written premium, 2019
    • Simplyhealth sells pet health business to concentrate on human health
  12. Competitive Strategies and Innovation

    • Strategic developments
    • Two providers restructure while a third plans a rebrand
    • COVID-19 response
    • Providers make pledges to refund customers…
    • …and introduce support measures
    • HCP providers similarly respond
    • New innovation centres on new digital capability and telehealth
    • Pandemic has put mental health under the spotlight
    • New product launches
    • Vitality introduces new preventative healthcare benefits for the SME market
    • Aon offers ‘affordable’ health plan in partnership with Equipsme
  13. Advertising and Marketing Activity

    • Vitality and Bupa top adspend list in 2019/20
      • Figure 29: Total above-the-line, online display and direct mail advertising expenditure on health insurance, 2015/16-2019/20
    • Vitality’s ad to inspire people to stay safe, fit and healthy at home during lockdown
    • Insurers shine a light on mental health issues
    • Nielsen Ad Intel coverage
  14. The Consumer – Key Takeaways

    • Product innovation is needed to develop more affordable PMI options
    • Providers need to address dissatisfaction caused by disruption to cover…
    • …and raise awareness of new mental health and wellbeing services
    • Significant interest in cover but price remains the main barrier
    • Delayed care will create demand for private healthcare
    • Interest in virtual health services has been boosted by pandemic experience
  15. Impact of COVID-19 on Consumer Behaviour

    • Public concern about catching coronavirus starts to rise again
      • Figure 30: Level of concern about risk of exposure to COVID-19, W1-W28
    • What this means for the health of the nation
    • Consumer spending on healthcare products likely to be maintained
      • Figure 31: Anticipated changes in expenditure on healthcare, household care, home and garden products and leisure and entertainment, W28 (17-25 September 2020)
    • Many adults still feel “uncomfortable” with the idea of going to the gym
      • Figure 32: Level of comfort participating in various activities, W28 (17-25 September 2020)
    • Wellbeing is more important than ever before
      • Figure 33: Key factors driving consumer behaviour around wellbeing, July 2020
  16. Product Ownership

    • 12% of UK adults have private health insurance
      • Figure 34: Ownership of health and other insurance products, in order of significance, July 2020
    • Household income is a major determinant of PMI ownership
    • Few people have both PMI and a health cash plan
    • 3% of UK adults have both PMI and dental insurance
    • 72% of PMI policyholders are either paying part or all of the premium themselves
      • Figure 35: Policy payee, July 2020
    • Joint and family policies are fairly prevalent
      • Figure 36: Policyholders covered, July 2020
  17. Types of Health Cover Held

    • Only 35% of policyholders appear to have comprehensive cover
      • Figure 37: Types of cover included in policy, July 2020
    • Personal subscribers are more engaged
      • Figure 38: Types of cover included in policy, by who pays for policy, July 2020
    • Interest in cancer cover likely to increase post-pandemic
      • Figure 39: Types of cover included in policy, by ownership of top four cover types, July 2020
    • Increased awareness of mental health cover could boost engagement
  18. Policyholder Satisfaction and Renewal Intentions

    • 13% of PMI policyholders are not planning to renew cover
      • Figure 40: Attitudes and experiences of policyholders, July 2020
    • One in three policyholders have experienced COVID-19 disruption to their cover
      • Figure 41: Attitudes and experiences of policyholders, by those planning to renew their policy and those who’ve experienced disruption to cover, July 2020
    • High degree of correlation between having experienced disruption and receiving rewards
    • Individual policyholders are more likely to have experienced disruptions…
      • Figure 42: Attitudes and experiences of policyholders, by who pays for policy, July 2020
    • …and yet satisfaction levels are much lower among the latter
  19. Assessing Interest and Affordability among Non-policyholders

    • Less than 1% of the non-insured would be willing to pay over £100 in monthly premiums
      • Figure 43: Amount willing to pay for health insurance by non-policyholders, July 2020
    • Opportunity for health cash plans and limited health cover products
    • Dental care is one of the most popular health insurance benefits
      • Figure 44: Most appealing benefits to non-policyholders, July 2020
    • Scope to triple the size of the health cash plan market
  20. Impact of COVID-19 on Consumer Health and Wellbeing

    • Pandemic has had a huge impact on the nation’s health
      • Figure 45: Experience of adverse effects of COVID-19 on personal health and wellbeing, July 2020
    • One in three delayed contacting their GP about a health concern at the height of the pandemic
    • PMI policyholders are more likely to feel their health had been compromised
      • Figure 46: Experience of adverse effects of COVID-19 on personal health and wellbeing, by those who have PMI and those with an HCP, July 2020
    • 28% of PMI policyholders experienced treatment delays as a result of COVID
  21. Accessing Healthcare in the Future

    • 32% of adults would consider private options because of increased NHS waiting times
      • Figure 47: Attitudes towards accessing healthcare in the future, July 2020
    • Three in five adults are more willing to use virtual health services in future
  22. Appendix – Data Sources and Abbreviations

    • Abbreviations
    • Consumer research methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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