2022
9
UK Consumers and Health Insurance Market Report 2022
2022-11-22T03:03:54+00:00
OX1100581
2195
157796
[{"name":"Consumers and Trends","url":"https:\/\/store.mintel.com\/industries\/consumers-trends"},{"name":"Insurance","url":"https:\/\/store.mintel.com\/industries\/finance\/financial-services\/insurance"}]
Report
en_GB
“Interest in taking out health insurance is strong among UK adults and is driven by concerns over how the growing NHS backlog will impact access to healthcare services. Entry level…

UK Consumers and Health Insurance Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK Consumers and Health Insurance Market Report identifies consumers’ attitudes towards private health insurance, recent launch activity and the impact of the cost of living on the UK health insurance market. This report covers the UK health insurance market size, market forecast, market segmentation and trends in the UK health insurance market.

 

Current UK Health Insurance Market Landscape

The NHS backlog continues to reduce confidence in NHS services, prompting higher consideration of private healthcare. However, the economic backdrop creates a challenging environment for the UK health insurance market. Medical cost inflation leads to high premiums for consumers, who are already facing higher prices across the board. Those who are more affluent will look for affordable options or ways to get more value out of their cover.

 

UK Health Insurance Market Size and Industry Statistics

Despite high inflation gripping the UK economy, this has not dampened interest in the private medical insurance market (PMI), but it will likely influence affordability. PMI owners tend to be higher earners, and have a mortgage. Recent increases in mortgage rates will push up monthly costs for consumers taking out or renewing mortgages over the next year. This may cause them to re-assess spending priorities resulting in the private medical insurance market’s subscribers looking to downgrade their policy or use price comparison sites to switch to a cheaper provider.

  • UK health insurance market size: Gross private medical insurance premiums are expected to increase by 6% in 2022 to stand at £4,328 million.
  • UK health insurance market share: Bupa is a leading private medical insurance provider, with a 41% market share.
  • 44% of adults who pay for health insurance would consider shopping around or downgrading their policy to save money during the cost of living crisis.
  • 16% of consumers are considering taking out health insurance in the next 12 months.

 

Future UK Health Insurance Market Trends

Mintel’s UK health insurance market research indicates that the higher volumes of new claims since the pandemic could pose a threat to the UK health insurance market. It is expected that providers will pass on these higher costs to subscribers in premiums, which could impact the affordability of health insurance, particularly relevant when consumers are facing higher prices across the board.

Meanwhile, the government estimates the NHS waiting list to fall from mid-2024, which may soften the demand in the private medical insurance market.

To discover more about the UK Health Insurance Market Report 2022, read our UK Private Healthcare Market Report 2022, or take a look at our Healthcare and Medical Market Research Reports.

 

Quickly Understand

  • Explores UK health insurance market size and a five-year forecast for new PMI business.
  • Explores UK health insurance market share, and sub-markets PMI and HCP.
  • Competitive strategies, launch activity and innovation in the UK health insurance market.
  • Ownership of health insurance products and impact of the cost of living crisis among PMI owners.
  • Future consideration of health insurance among consumers.
  • Prioritised policy features among consumers considering PMI.
  • Attitudes towards health and health insurance.

 

Covered in this Report

Brands: Bupa, Vitality Health, Aviva, AXAHealth, Medicash, HSF Health Plan, SimplyHealth, BHSF, HSF Health Plan, WPA, Westfield Health, Health Shield, Personal Assurance, Sovereign Health, National Friendly

Products: Private medical insurance, health cash plans, healthcare trusts and private healthcare plans.

 

Expert Analysis from a Specialist in the Financial Sector

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

Interest in taking out health insurance is strong among UK adults and is driven by concerns over how the growing NHS backlog will impact access to healthcare services. Entry level products that include in-demand features, such as diagnostic and dental services, will help to bring new customers to the market.”

Natasha Hayes

Natasha Hayes
Financial Services Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Products covered in this Report
  2. Executive Summary

    • The five-year outlook for health insurance
      • Figure 1: Category outlook, 2022-27
    • The market
    • Inflation and new business are expected to drive some premium growth in 2022
      • Figure 2: Market size for private medical insurance market – gross earned premiums, 2012-22
    • Growth will continue over the next five years
      • Figure 3: Market forecast private medical insurance, 2022-27
    • Average premiums vary across products
      • Figure 4: Average monthly premium for health insurance products, 2017-22
    • COVID-19 causes fluctuation in claims
      • Figure 5: Total number and average value of PMI claims, 2015-21
    • Growth stalls in HCP market
    • Number of people covered on healthcare trusts grows further
    • Companies and brands
    • Bupa leads the PMI market…
      • Figure 6: Estimated market shares of largest PMI providers, based on gross written premiums, 2021
    • …and Simplyhealth leads the way for HCPs
      • Figure 7: Estimated market shares of HCP providers, based on gross written premiums, 2021
    • Other healthcare products also see growth in uptake
    • Peachy raises £1.5 million in funding
    • The consumer
    • One in five has health-related cover
      • Figure 8: Insurance product ownership, 2020-22
    • One in five have cover fully paid for by an employer
      • Figure 9: Health insurance payees, 2022
    • Retention must be a focus for health insurers
      • Figure 10: Impact of the cost of living crisis on health insurance ownership, 2022
    • Opportunity to increase PMI ownership
      • Figure 11: Consideration of health insurance, 2022
    • Consumers under-estimate the cost of cover
      • Figure 12: Proposed price of health insurance, by interest in taking out a policy, 2022
    • Diagnostic services are most popular amongst interested consumers
      • Figure 13: Ranking of important policy features, 2022
    • Three in four are concerned about NHS delays
      • Figure 14: Attitudes towards health insurance, 2022
    • Consumers are interested in health and protection insurance bundles
    • Entry level PMI option could extend market reach
  3. Issues and Insights

    • NHS delays grow interest in private healthcare options
    • Entry level cover will be appealing to consumers
    • Retention of current customers should be a priority
  4. Market Size and Performance

    • PMI market estimated to grow further in 2022
      • Figure 15: Market size for private medical insurance market – gross earned premiums, 2012-22
    • More than five million are covered on health insurance
      • Figure 16: Number of subscribers and people covered on private medical insurance, 2010-21
  5. Market Forecast

    • The PMI market will grow, but will be outpaced by inflation
      • Figure 17: Category outlook, 2022-27
    • New premiums forecast to grow 4% in 2023
      • Figure 18: Market forecast of private medical insurance, 2022-27
      • Figure 19: Market forecast of private medical insurance, 2022-27
    • Learnings from the last income squeeze
      • Figure 20: Value of PMI gross earned premiums, 2004-14
    • Forecast methodology
  6. Market Segmentation

    • Average premiums vary heavily across products
      • Figure 21: Average monthly premium for health insurance products, 2017-22
    • More than four million people covered on corporate policies
      • Figure 22: Market size for corporate private medical expense insurance, 2017-21
    • Individual subscribers reached highest level since 2014…
      • Figure 23: Number of subscribers and people covered on personal private medical insurance, 2017-21
    • …driving higher GEP
      • Figure 24: Market size for personal private medical expense insurance, 2017-21
  7. Claims Activity

    • COVID-19 causes claim fluctuations
      • Figure 25: Total number and average value of PMI claims, 2015-21
    • Claims across market segments surpass pre-pandemic levels
      • Figure 26: Claims activity for corporate and individual PMI policies, 2017-21
    • Musculoskeletal conditions are the top claim
      • Figure 27: Proportion of PMI claimants by condition, 2021
  8. Alternatives to PMI

    • Growth in the HCP market has stalled
      • Figure 28: Market size for health cash plans, 2017-21
    • Number of people covered on healthcare trusts passes 1.5 million
      • Figure 29: Market size for healthcare trusts, 2017-21
  9. Market Drivers

    • NHS backlog continues to increase…
      • Figure 30: Total number of people waiting for NHS services in England, 2019-22
    • …and the pandemic placed a spotlight on health and wellbeing
      • Figure 31: How consumers could be encouraged to lead a healthier lifestyle, 2021
    • Consumers face considerable inflationary pressure…
      • Figure 32: Annual changes in CPI, average regular wages and average real regular wages (adjusted for CPI), 2007-22
    • …curbing consumers’ financial wellbeing
      • Figure 33: Financial confidence index, 2017-22
    • Despite low unemployment, healthcare vacancies continue to creep up
      • Figure 34: Vacancies for the human health and social work activities industry, 2019-22
    • New consumer duty rules will affect all FCA-authorised firms
  10. Market Share

    • Bupa dominates PMI market
      • Figure 35: Estimated market shares of largest PMI providers, based on gross written premiums, 2021
    • 2021 was a difficult year for HCP providers
      • Figure 36: Estimated market shares of HCP providers, based on gross written premiums, 2021
    • Vitality Health premiums grow 29% over last five years
      • Figure 37: Largest providers of PMI and HCPs, by premium income, 2020-21
    • Other healthcare products also see growth in uptake
  11. Competitive Strategies

    • Providers establish partnerships to improve user experience
    • Providers continue to report COVID pay-outs
    • Digital services could help retain customers
    • Bupa and Simplyhealth establish new ESG efforts
    • AXA Health gives two months of free cover…
    • …whilst WPA adds family members to new policies for free
    • Simplyhealth offers financial support to plan holders
    • Benenden Health strengthens presence in intermediary market
  12. Launch Activity and Innovation

    • Start-up Peachy raises £1.5 million in funding
    • National Friendly launches My PMI
    • Adviser Paradigm launches new proposition
    • Benenden Health plans a low-cost version of core product
  13. Advertising and Marketing Activity

    • Above-the-line advertising spend halves in 2021/22
      • Figure 38: Total above-the line, online display and direct mail advertising expenditure on private healthcare insurance, 2017/18-2021/22
    • Advertising spend dominated by three providers
      • Figure 39: Top advertisers by above-the line, online display and direct mail advertising expenditure on private healthcare insurance, 2017/18-2021/22
    • Benenden Health launches campaign with Channel 4
    • Bupa releases ‘This is Health’ TV ad campaign
    • Saga launches ‘Future Proof Your Health’ campaign
    • AXA Health goes out on the road
      • Figure 40: AXA’s Feelgood Health campaign, 2022
    • Nielsen Ad Intel coverage
  14. Product Ownership

    • One in five have health related cover
      • Figure 41: Insurance product ownership, 2020-22
    • Health insurance popular among those with multiple policies
      • Figure 42: Insurance product ownership – repertoire analysis, 2022
      • Figure 43: Ownership of health and other insurance products, by number of insurance products owned, 2022
    • Higher earners more likely to have PMI…
      • Figure 44: Health insurance (PMI) ownership, by household income, 2022
    • …although one in five has it paid for by employer
      • Figure 45: Health insurance payees amongst consumers with household income over £50,000, 2022
  15. Impact of the Rising Cost of Living

    • Market is largely protected from cost of living crisis…
      • Figure 46: Impact of the cost of living crisis on health insurance ownership, 2022
    • …although consumers are in agreement that support should be offered
    • Retention is key for health insurers…
    • Opportunity for comparison sites and brokers to help find best deals
  16. Consideration of Health Insurance

    • Opportunity to increase PMI ownership…
      • Figure 47: Consideration of health insurance, 2022
    • …although price is a sticking point
      • Figure 48: Proposed price of health insurance, by interest in taking out a policy, 2022
    • Entry level options could boost sales
  17. Policy Features

    • Over-45s drawn to PMI by diagnostic services
      • Figure 49: Ranking of important policy features, 2022
    • Dental services are popular amongst potential customers
    • Providers can differentiate themselves with incentives
  18. Attitudes towards Health and Health Insurance

    • NHS delays are a top consumer concern
      • Figure 50: Attitudes towards health insurance, 2022
    • Virtual consultations will help younger adults open up about health concerns
    • Consumers are interested in a hybrid protection-health product
    • Entry level PMI option could extend market reach
      • Figure 51: Interest in purchasing basic health insurance cover, by generation, 2022
    • Privately funding treatment is popular for some
      • Figure 52: Attitudes towards alternatives to private health insurance, 2022
    • …however, those with savings may choose to self-pay
      • Figure 53: Interest in paying for private healthcare treatments, by value of cash savings, 2022
  19. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  20. Appendix: Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 54: Market forecast for health insurance – gross earned premiums, 2022-27
    • Market drivers and assumptions
    • 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.

Below is a sample report, understand what you are buying.

Click to show report
2024 Sample Consumer Cover

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.

Trusted by companies. Big and small.

Want to speak to us directly?

Contact us with your enquiry and our expert global team can help.

Get in touch