Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

UK Private Medical Insurance market report

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Private Medical Insurance market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry and how fast are its rates of growth? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Products covered in this report

For the purposes of this Report, Mintel has used the following product definitions:

Private medical insurance (also known as private health insurance) is designed to cover the costs of private treatment for what are commonly known as acute medical/surgical conditions (ie curable, short-term illnesses or injuries). The main advantage of having this cover is that it ensures prompt access to treatment should the policyholder become ill or injured.

Policies are either fully underwritten (requiring the policyholder to disclose their full medical history) or written on a moratorium basis (the policyholder needs to give more limited information and the policy excludes pre-existing conditions, whether or not diagnosed).

Alongside traditional PMI policies, there are a number of product variants. These include:

  • Condition-specific policy – covers the cost of private treatment for a specified condition or conditions, typically cancer and heart disease.
  • Treatment-specific policy – covers the cost of certain specified treatments, such as physiotherapy, psychiatry and alternative therapy.

Other related products include:

Health cash plan – provides cash benefits to cover the cost of primary care treatment, expenses associated with hospital treatment (though not the treatment itself) and post-operative care. The majority of plans do not cover the full cost, but pay a fixed rate usually between 50% and 75%. Plans may also include protection cover, wellness services and telephone helplines. Unlike PMI, health cash plans work on the basis of ‘guaranteed acceptance’, meaning that subscribers are not required to undergo a medical examination. However, most plans do not cover pre-existing conditions. Premiums are not age-related, but most plans have an upper age limit of 65 years.

Dental plan – provides guaranteed dental care treatment in return for a regular monthly amount.

Vision/optical plan – similar to a dental plan except it is designed to cover optical care treatment.

Report focus

The main focus of this Report is on insured health cover, which comprises personal PMI (ie arranged by individuals) and corporate PMI policies (arranged by an employer for some or all employees).

A rival product to corporate PMI is the self-assured scheme, also known as a health trust scheme. This is where an employer creates a ‘pot of money’ (which is either fully funded by the employer or funded by voluntary employee contributions), which can be used to cover eligible medical expenses incurred by employees. Typically administered by a third party such as an insurance company, the scheme is written under trust. However, as it is not an insurance contract it is not subject to insurance premium tax (IPT) – one of the key benefits of this type of arrangement.

Expert analysis from a specialist in the field

Written by Patrick Ross, a leading analyst in the Finance sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

While the corporate market has advanced, personal contracts have lost ground as prices have continued to rise. Expanding the market will remain an uphill battle in the current economic environment and as some potential customers consider topping up NHS services with private self-pay. Older Millennials represent a key target group for those insurers able to deliver best-in-class digital services. Patrick Ross
Senior Financial Services Analyst

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
      • Covered in this Report
      • Executive Summary

          • The market
            • Growth slows in 2018 following decade-high growth in 2017
              • Figure 1: The UK Market for Commercial Insurance, in GWPs, 2014-2018, (£ Million)
            • Commercial property premiums account for over a quarter of market GWP value
              • Figure 2: UK Commercial Insurance Market, in GWP, by Insurance Type, 2014-2018, (£ Million)
            • US represents largest commercial insurance market globally
              • Figure 3: The World’s 10 Largest Commercial Insurance Markets, in Direct Non-Life Insurance Premiums, 2017, (in $ Billion)
            • Market growth expected to be driven by business uncertainty
              • Figure 4: The UK Market Forecast for Commercial Insurance, in Gross Written Premiums, 2019-2023, (£ Million)
            • Companies and brands
              • What we think
              • Issues and Insights

                • A rise in the number of cyber-attacks has driven demand for appropriate cover, although take-up remains somewhat low
                  • The facts
                    • The implications
                      • Recommended actions highlighted in the fight against commercial insurance fraud
                        • The facts
                          • The implications
                          • The Market – What You Need to Know

                            • Growth slows in 2018 following decade-high growth in 2017
                              • Market growth expected to be driven by businesses covering themselves against uncertainty
                              • Market Size and Market Segmentation

                                  • Growth stalls slightly in 2018 following decade-high growth in 2017
                                    • Figure 5: The UK Market for Commercial Insurance, in Gross Written Premiums, 2014-2018, (£ Million)
                                  • US represents the largest commercial insurance market in terms of written premiums
                                    • Figure 6: The World’s 10 Largest Commercial Insurance Markets, 2010 and 2017, (in $ Billion and % Share of Non-Life Market and GDP, respectively)
                                  • Market Segmentation
                                    • Commercial property premiums account for over a quarter of market GWP value
                                      • Figure 7: UK Commercial Insurance Market, in GWP, by Insurance Type, 2014-2018, (£ Million)
                                    • Independent intermediaries collect over three-quarters of all commercial insurance lines
                                        • Figure 8: UK Commercial Lines General Insurance, by Distribution Channels, 2013-2017, (% of Total)
                                      • US records largest non-life premium growth in 2017, but Spain records highest five-year growth average
                                        • Figure 9: Real Growth of Direct Premiums Written in Major Non-Life Insurance Markets, by Country and Region, 2013-2017, (%)
                                    • Market Forecast

                                        • Market growth expected to be driven by businesses covering against uncertainty
                                          • Figure 10: The UK Market Forecast for Commercial Insurance, in Gross Written Premiums, 2019-2023, (£ Million)
                                        • Property insurance to continue to account for largest share of the market, whilst liability insurance will experience greatest growth
                                          • Figure 11: The UK Market Forecast for Commercial Insurance, by Type, 2019-2023, (£ Million)
                                        • FCA launches study into the wholesale insurance brokers market
                                        • The Impact of the Economy

                                          • GDP growth rebounds in Q3 but challenges remain
                                            • Figure 12: GDP growth rate, Q3 2014 - Q3 2018, (% change on previous quarter)
                                        • Market Trends

                                          • Motor
                                              • Figure 13: UK Commercial Motor Insurance Market Size, by Premiums, Outgoing Payments and Underwriting Result, 2013-2017, (£ Million)
                                              • Figure 14: UK Commercial Motor Insurance Market Segmentation, by Motor Insurance Type in GWP, 2013-2017, (£ Million)
                                              • Figure 15: UK Commercial Motor Insurance Market Operating Ratios, 2013-2017, (%)
                                              • Figure 16: UK Commercial Motor Insurance Business, by Distribution Channels, 2013-2017, (% of Total)
                                              • Figure 17: Detected Claims Fraud in the UK Commercial Motor Insurance Market, in Value and Volume, 2014-2017, (in £000 and 000)
                                            • Property
                                                • Figure 18: UK Commercial Property Insurance Market Size, by Premiums, Outgoing Payments and Underwriting Result, 2013-2017, (£ Million)
                                                • Figure 19: UK Commercial Property Insurance Market Segmentation, by Type of Cover, in GWP, 2013-2017, (£ Million)
                                                • Figure 20: UK Commercial Property Insurance Market Operating Ratios, 2013-2017, (%)
                                                • Figure 21: Detected Claims Fraud in the UK Commercial Property Insurance Market, in Value and Volume, 2014-2017, (in £000 and 000)
                                              • Liability
                                                  • Figure 22: UK Liability Insurance Market Size, by Premiums, Outgoing Payments and Underwriting Result, 2013-2017, (£ Million)
                                                  • Figure 23: UK Liability Insurance Market Segmentation, by Liability Insurance Type in GWP, 2013-2017, (£ Million)
                                                  • Figure 24: UK Liability Insurance Market Operating Ratios, Total and by Liability Insurance Type 2013-2017, (%)
                                                • Private Medical Insurance
                                                    • Figure 25: UK Corporate PMI Market Size, by Gross Earned Premiums, 2013-2017, (Premiums in £ Million, Average in £)
                                                    • Figure 26: UK Corporate PMI Claims Paid and Gross Margin Development, 2013-2017, (Premiums and Claims in £ Million and Margins in %)
                                                  • Marine, Aviation and Transit (MAT)
                                                      • Figure 27: UK MAT Insurance Market Size, by Premiums, Outgoing Payments and Underwriting Result, 2013-2017, (£ Million)
                                                      • Figure 28: UK Marine Insurance Market Size, by Premiums, Outgoing Payments and Underwriting Result, 2013-2017, (£ Million)
                                                      • Figure 29: UK Aviation Insurance Market Size, by Premiums, Outgoing Payments and Underwriting Result, 2013-2017, (£ Million)
                                                      • Figure 30: UK Transport Insurance Market Size, by Premiums, Outgoing Payments and Underwriting Result, 2013-2017, (£ Million)
                                                      • Figure 31: UK MAT General Insurance, by Distribution Channels, 2013-2017, (% of Total)
                                                    • Trade Credit
                                                        • Figure 32: UK Trade Credit Insurance Market Size, by Premiums and Share of Commercial Pecuniary Loss Market, 2013-2017, (£ Million and %)
                                                        • Figure 33: UK Trade Credit Insurance Market, by Number of Policies and Insured Turnover Amount, 2013-2017, (in Units and £ Million)
                                                        • Figure 34: UK Trade Credit Insurance, by Number of Claims and Gross Payments, 2013-2017, (Claim Number in Units and Gross Payments in £000)
                                                        • Figure 35: UK Trade Credit Insurance Market Share of Premiums, by Market Segment, Customer Size and Insured Turnover and by Distribution Channels, 2013-2017, (%)
                                                    • Market Drivers

                                                        • Insurers prepare for a ‘no-deal’ Brexit with uncertainty remaining high
                                                          • IPT remains unchanged but insurers still wary of future hikes
                                                            • Regulation
                                                              • The Marine Insurance Act 1906
                                                                • The Insurance Act
                                                                  • The Enterprise Bill/Enterprise Act
                                                                    • The Third Parties (Rights Against Insurers) Act
                                                                      • EU Regulations
                                                                        • Solvency II
                                                                          • The Insurance Distribution Directive (IDD)
                                                                            • Prudential Regulation Authority
                                                                              • The IFRS 17
                                                                              • Companies and Brands – What You Need to Know

                                                                                • Lloyd’s of London launches new digital platform to improve connectivity in the industry
                                                                                  • ‘Pay-as-you-go’ and cyber products target underinsured SME market
                                                                                  • Industry Structure

                                                                                    • Industry development
                                                                                      • Lloyd’s of London launches new digital platform to improve connectivity in the industry
                                                                                        • The industry is starting to adopt digital methods that will help improve the underwriting process…
                                                                                          • …which has also driven ‘insurtech’ activity
                                                                                            • Industry M&A activity
                                                                                              • The number of businesses operating in the industry rose in 2018, but growth in the number of outlets continues to stagnate
                                                                                                • Figure 36: Analysis of the Changes in the Structure of the Non-Life Insurance Industry, 2014-2018, (Number of Outlets and Businesses)
                                                                                              • Structure by Employment
                                                                                                • Figure 37: Analysis of the Employment Structure of the Non-Life Insurance Industry, 2017 and 2018, (Number of Employees and Outlets)
                                                                                              • Structure by Turnover
                                                                                                • Figure 38: Analysis of the Financial Structure of the Non-life Insurance Industry, 2017 and 2018, (£000 and Number of Businesses)
                                                                                            • Competitive Strategies

                                                                                              • ‘Pay-as-you-go’ and cyber products target underinsured SME market
                                                                                                • London Market targets emerging regions
                                                                                                • Company Profiles

                                                                                                  • Ageas
                                                                                                    • Recent company activity
                                                                                                      • Financial information
                                                                                                        • Figure 39: Financial Analysis of Ageas Insurance Limited, 2013-2017, (£ Million)
                                                                                                      • AIG Europe Limited
                                                                                                        • Recent company activity
                                                                                                          • Financial information
                                                                                                            • Figure 40: Financial Analysis of AIG Europe Limited, 2013-2017, (£ Million)
                                                                                                          • Allianz
                                                                                                            • Recent company activity
                                                                                                              • Financial information
                                                                                                                • Figure 41: Financial Analysis of Allianz Holdings, 2013-2017, (£ Million)
                                                                                                              • AXA Insurance
                                                                                                                • Recent company activity
                                                                                                                  • Financial information
                                                                                                                    • Figure 42: Financial Analysis of AXA Insurance UK, 2013-2017, (£ Million)
                                                                                                                  • Hiscox
                                                                                                                    • Recent company activity
                                                                                                                      • Financial information
                                                                                                                        • Figure 43: Financial Analysis of Hiscox, 2013-2017, (£ Million)
                                                                                                                      • QBE Insurance (Europe)
                                                                                                                        • Recent company activity
                                                                                                                          • Financial information
                                                                                                                            • Figure 44: Financial Analysis of QBE Insurance (Europe), 2013-2017, (£ Million)
                                                                                                                          • RSA Group
                                                                                                                            • Recent company activity
                                                                                                                              • Financial information
                                                                                                                                • Figure 45: Financial Analysis of RSA Group, 2013-2017, (£ Million)
                                                                                                                            • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                • Abbreviations
                                                                                                                                  • Methodology
                                                                                                                                  • Further Sources and Contacts

                                                                                                                                    • Trade Associations
                                                                                                                                      • Trade Magazines
                                                                                                                                        • Trade Exhibitions