Private Medical Insurance Market is Forecast to Rise at a CAGR of 2% Private Medical Insurance Market 2017

Private Medical Insurance Market is forecast to rise at a CAGR of
2% During the Period 2017: Radiant Insights, Inc
Synopsis
The report provides market analysis, information and insights into the UK private medical insurance
insurance business
It provides a snapshot of market size and market segmentation
It offers comprehensive analysis of claims, drivers and market outlook
It analyzes distribution channels
It offers an overview of deals, news and regulatory developments
Summary
Gross written premiums in the private medical insurance category amounted to GBP3.65 billion in 2012,
recording growth of 3.2% from 2011, and a compound annual growth rate (CAGR) of 2.47% during the
review period (2008-2012).
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Favorable developments in premiums belie the underlying trends in demand, however. As a discretionary
insurance product, supplementary to free-to-access healthcare through the National Health Service
(NHS), the number of private medical policyholders has been subject to a downwards trend since 2006
and hit its lowest level on record in 2012, at 5.6 million. Factors driving the apparent shift in attitudes
include improved levels of satisfaction with the NHS, increased public healthcare spending, and
deterioration in labor market conditions.
The market for private medical insurance is dominated by four insurers - Bupa, Axa, Aviva and
Prudential - which have a combined market share of 92%. Despite this concentrated market, a lack of
competition between private hospital operators has restricted insurers' bargaining power and resulted in
inflated claims costs. Coupled with the decline in customer numbers, this has been the biggest driver of
premium growth as insurers responded to drags on profitability by raising prices for customers.
The consumer shift away from private medical insurance is unlikely to be fully reversed. Nevertheless,
favorable forces will underpin a modest CAGR of 2% for gross written premiums over the forecast period
(2013-2017). A recovery in economic growth will improve wage and employment conditions, NHS
reforms are expected to advance the role of the private healthcare and insurance sector, while the UK's
evolving demographic profile will increase the strain on the public healthcare system.