2021
9
UK Consumers and Health Insurance Market Report 2021
2022-01-20T03:08:45+00:00
OX1050529
2195
147043
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Report
en_GB
“The UK public and private healthcare sectors continue to face challenges and disruption associated with the coronavirus pandemic. However, the health insurance market stands in a strong position with opportunities…

UK Consumers and Health Insurance Market Report 2021

£ 2,195 (Excl.Tax)

Description

The UK Consumers and Health Insurance report identifies consumer attitudes towards the health insurance market, competitive strategies, and top health concerns amongst consumers in the UK. This market report covers the market size, market forecast, market segmentation and industry trends for the health and medical insurance market in the UK.

Current Market Landscape

Both the public and private healthcare sectors in the UK have faced significant challenges since the outbreak of the pandemic, with COVID-19 changing consumer attitudes towards health. The increased interest in health insurance has also opened up discussions around health and wellbeing, as well as addressing the need for the stability of healthcare provision.

  • 61% of UK adults have become more comfortable talking about their health in the last few years.
  • 48% of UK adults are more concerned about their health since the outbreak of coronavirus.

Assuming that the private healthcare sector remains open, we expect the pandemic to have a positive impact on the health insurance market. Consumers will continue to look to alternative solutions for faster access to medical advice and treatment.

Future Market Trends in Consumers and Health Insurance 

The biggest threat to the health insurance market currently is the sensitivity and uncertainty of the UK healthcare landscape. The nature of the pandemic continue to change, and health insurers and consumers are having to adapt constantly.

Despite the uncertainty, there are significant opportunities for the health insurance market in the longer term. With NHS waiting lists increasing month on month, consumers are increasingly looking at alternative healthcare options. Insurers must demonstrate the value of health insurance to consumer and make sure that policy information fully displays the benefits of this type of cover.

Read on to discover more details or take a look at all of our UK Financial Services market research.

Quickly understand

  • The impact of COVID-19 on the health insurance market and consumer attitudes towards health.
  • The size of the health insurance market and a five-year forecast for new PMI business.
  • Competitive strategies and innovation activity in the market.
  • Penetration of PMI and health cash plans among UK consumers, and the types of PMI cover held.
  • The top health concerns amongst consumers and reasons for purchasing health insurance.

Covered in this report

Brands: Bupa, AXA Health, Aviva, Vitality, WPA, Exeter Friendly Society, Simplyhealth, Westfield Health, Health Shield, BHSF, HSF Health Plan, Medicash Health, Personal Assurance, Sovereign Health, Benenden, Saga.

Expert analysis from a specialist in the field

This report, written by Natasha Hayes, a leading analyst in the Financial sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The UK public and private healthcare sectors continue to face challenges and disruption associated with the coronavirus pandemic. However, the health insurance market stands in a strong position with opportunities for growth in the short and medium term. The pandemic has encouraged consumers to think more about their health and wellbeing, and this is drawing attention and new business to the health insurance market.
Natasha Hayes
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, 2020-25
    • The market
    • GEP set to increase over the next five years
      • Figure 2: Market size and forecast for the health insurance market, 2016-26
    • Corporate policies continue to dominate the market
    • Claims dropped by 15% in 2020
    • The HCP market saw similar trends to PMI
    • Companies and brands
    • Four providers dominate the PMI market
      • Figure 3: Estimated market shares of the largest PMI providers, based on gross written premium, 2020
    • Health insurers focus on new partnerships
    • Launch activity continues
    • The consumer
    • 14% of adults have PMI, while 6% have a health cash plan
      • Figure 4: Ownership of health and other insurance products, 2021
    • Two thirds of policies cover more than one person
      • Figure 5: People covered on health insurance, 2021
    • 34% of people with PMI report having comprehensive cover
      • Figure 6: Cover included in health insurance policies, 2021
    • Cancer is the top health concern
      • Figure 7: Top health concerns for consumers, 2021
    • Delays in NHS services offer an opportunity for health insurers
      • Figure 8: Reasons to consider purchasing health insurance, 2021
    • Preventative services are a growing area of interest
    • COVID-19 has changed attitudes towards health and health insurance
      • Figure 9: Consumer attitudes towards health, 2021
  3. Issues and Insights

    • NHS delays offer an opportunity for alternative healthcare solutions
    • Digitalisation of the healthcare sector continues
    • Consumers are more health-conscious
  4. Market Size and Performance

    • Health insurance providers continue to recover from the effects of COVID-19
      • Figure 10: Short, medium and long term impact of COVID-19 on Health Insurance, 2021
    • Private medical insurance market declines slightly in 2020
      • Figure 11: Value of PMI gross earned premiums, 2016-2021
    • Total subscribers topped 3 million in 2020
      • Figure 12: Total number of subscribers and people covered on PMI policies (ABI members only), 2016-2020
  5. Market Forecast

    • Health insurance premiums forecast to gradually increase
      • Figure 13: Market forecast for health insurance premiums, 2016-2026
    • Market drivers and assumptions
      • Figure 14: Key drivers affecting Mintel’s market forecast, 2015-26
    • Forecast methodology
  6. Market Segmentation

    • Corporate policies continue to dominate the PMI market
    • Small growth in number of subscribers across both segments
      • Figure 15: Number of people covered on PMI policies by segment (ABI members only), 2016-2020
    • Average premiums continued to fall
      • Figure 16: Average PMI premium by segment (ABI members only), 2016-2020
  7. Claims Experience

    • The number of claimants fell by 15% in 2020 …
      • Figure 17: Number of PMI claimants by segment (ABI members only) 2016-2020
    • … which brought down claims values
      • Figure 18: Total value of PMI claims (ABI members only), 2016-2020
    • Average claims remained consistent
      • Figure 19: Average value of claims (ABI member data only), 2016-2020
    • 33% of claims were for musculoskeletal conditions
      • Figure 20: Proportion of PMI claimants by condition (ABI members only), 2019-2020
    • Cancer accounted for 6% of claims in 2020
  8. Other Health Cover Products and Solutions

    • Health cash plan market grew slightly
      • Figure 21: Health cash plans – number of subscribers, gross earned premiums and claims incurred, 2017-20
    • HCPs could be a cost-saving alternative
      • Figure 22: Average premium for Corporate PMI, Personal PMI, HCPs and Healthcare Trusts (ABI members only), 2018-2020
    • Healthcare trust subscriptions continued to grow in 2020
      • Figure 23: Healthcare trusts – number of subscribers, people covered and gross earned premiums, 2016-20
  9. Market Drivers

    • Unemployment unlikely to affect corporate policies as expected
    • Millions are waiting for NHS treatment
      • Figure 24: Total number of people waiting for NHS services in England, 2019-2021
    • Job shortages hit care roles
    • No change in IPT for the time being
    • Digital services are here to stay
  10. Market Share

    • Bupa remains the market leader
      • Figure 25: Largest providers of PMI and health cash plans, by premium income, 2019-20
    • Vitality bucked the downward trend in premiums
    • The top four providers dominate the health insurance market
      • Figure 26: Estimated market shares of the largest PMI providers, based on gross written premium, 2020
    • Simplyhealth is the largest HCP provider
      • Figure 27: Estimated market shares of the largest HCP providers, based on gross written premium, 2020
  11. Competitive Strategies

    • Strategic Developments
    • New partnerships have been established in the PMI market
    • AXA’s rebranding to AXA Health is now complete
    • COVID-19 response
    • Customer rebates
    • Long COVID
    • Private COVID antigen and antibody testing
  12. Launch Activity and Innovation

    • Bupa has a new corporate offering
    • Vitality and Bupa have launched menopause support
    • New digital services
    • Health insurers launched new apps and platforms …
    • … as did HCP providers
    • The NHS is also following suit
  13. Advertising and Marketing Activity

    • Advertising doubled in 2020/21
      • Figure 28: Total above-the-line, online display and direct mail advertising expenditure on private healthcare insurance, 2016/17-2020/21
    • Simplyhealth recorded an almost ten-fold increase in adspend …
      • Figure 29: Total above-the-line, online display and direct mail advertising expenditure by private healthcare insurance, by advertiser, 2018/19-2020/21
    • … but Vitality retreated from above-the-line adspend
    • Health insurers focus on TV and digital advertising
      • Figure 30: Total above-the-line, online display and direct mail advertising expenditure by private healthcare insurance, by media type, 2018/19-2020/21
    • Nielsen Ad Intel coverage
  14. Brand Research

    • Brand map
      • Figure 31: Attitudes towards and usage of selected brands, 2021
    • Key brand metrics
      • Figure 32: Key metrics for selected brands, 2021
    • Brand attitudes: Consumers perceive Vitality to be a brand that rewards loyalty
      • Figure 33: Attitudes, by brand, 2021
    • Brand personality: Aviva and AXA are considered accessible
      • Figure 34: Brand personality – macro image, 2021
    • Saga is considered a competent and reliable brand
      • Figure 35: Brand personality – micro image, 2021
    • Brand analysis
    • Consumers are committed to Aviva
    • Bupa is perceived as a prestigious brand
    • Vitality is known for rewarding loyalty
    • AXA is more popular amongst younger men
    • Saga is a differentiated brand targeting the over-50s market
  15. Product Ownership

    • One in seven have a health insurance policy …
      • Figure 36: Ownership of health and other insurance products, 2021
    • … rising to one in three of higher earners
      • Figure 37: Ownership of health insurance and health cash plans, by household income, 2021
    • Two thirds of people own more than one insurance product
      • Figure 38: Insurance product ownership – Repertoire Analysis, 2021
      • Figure 39: Ownership of health and other insurance products, by number of insurance products owned, 2021
    • Most people with health insurance pay for their own cover
      • Figure 40: Health insurance payees, 2020-2021
    • Cover for others is a key benefit
      • Figure 41: People covered on health insurance, 2021
  16. Health Insurance Product Features

    • Just a third of policyholders appear to have comprehensive cover
      • Figure 42: Cover included in health insurance policies, 2021
    • 34% of policyholders say they have cancer cover
    • Mental health support has become a mainstream feature of PMI
  17. Health Concerns

    • Cancer is the top health concern
      • Figure 43: top health concerns for consumers, 2021
    • Taboo topics are not high on people’s agendas
    • The pandemic continues to impact concerns around mental illnesses
    • Concerns don’t necessarily match what people claim for
  18. Reasons to Consider PMI in the Future

    • Delays in NHS services are the main reason to consider buying health insurance …
      • Figure 44: Reasons to consider purchasing health insurance, 2021
    • … however half of consumers still won’t consider buying PMI
    • Preventative services are a nice to have …
      • Figure 45: Preventative services as a reason to buy PMI, by age, 2021
    • … but could prove valuable as renewal incentives
  19. Attitudes Towards Health and Health Insurance

    • COVID-19 has changed people’s attitudes towards their health
      • Figure 46: Consumer attitudes towards health , 2021
    • Health insurance is not the current go-to solution
    • People are now more comfortable talking about their health
    • Consumers want convenience
      • Figure 47: Consumer attitudes towards receiving medical consultations on a phone/video call, CHAID analysis, 2021
  20. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
    • CHAID analysis methodology
      • Figure 48: Consumers and health insurance – CHAID – Table output, 2021
  21. Appendix – Central Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 49: Value of PMI gross earned premiums, 2016-2026
    • Market drivers and assumptions
      • Figure 50: Key drivers affecting Mintel’s market forecast, 2020-2026
    • Forecast 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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Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

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