英國的民間醫療保險市場：2007年

Abstract

This report provides a detailed study of the UK private medical insurance market, with information on market size and profitability, as well as developments in average premiums and policy numbers. In addition, the size of the market is forecast until 2012 under two scenarios reflecting different views on the future of the individual market.

• Data on market size, policyholder numbers and average premiums for the UK PMI market
• Information on product penetration and consumer attitudes to private medical insurance
• Forecasts of premium income until 2012 under two different scenarios, based on primary research and in-house expertise

Total subscribers to PMI schemes grew by 3.4% in 2006 to a total of 3.4 million. The individual sector increased its number of subscribers by 1.8%. While this is a relatively small increase, it is important because it is the first growth the individual market has achieved in 10 years.

According to data from Ipsos MORI, 12% of consumers had private medical insurance in 2007. This makes private medical insurance the most popular health insurance product, with dental plans, critical illness insurance and cash plans scoring significantly lower.

The number of PMI subscribers is forecast to grow only slightly between 2007 and 2012. The small overall growth in subscribers reflects very different developments in individual and group subscriber numbers. In the individual market, the number of subscribers is forecast to fall slightly, while the group market is expected to achieve growth.

• Benchmark your market share and premium income against your competitors
• Understand consumer attitudes to PMI cover
• Develop your future market strategy using Datamonitor' s unique forecasts

• Overview
  • Catalyst
  • Summary
• Executive Summary
  • The UK PMI market grew in 2006 as subscriber numbers and average premiums increased
  • Premium income for UK private medical insurance grew to £3 billion in 2006 in GEP terms
  • PMI subscriber numbers increased in both sectors in 2006
  • Premium rates fell in the group sector and grew slowly in the individual sector in 2006
  • The individual sector is concerned with lowering costs to attract more policyholders
  • The group sector is concerned with developing wellness propositions to complement PMI offerings
• Uptake of PMI is still relatively low in the population but peaks among wealthy individuals aged 45 to 54
  • Only around 12% of consumers have private medical insurance
  • Cost of cover is the main reason given by consumers for not wanting private medical insurance
  • Penetration rates are highest among wealthy consumers aged 45 to 54
• BUPA and AXA dominate the market but the ranking of other players were influenced by consolidation in 2006
  • BUPA and AXA lead the PMI market, writing significantly more business than their nearest competitors
  • The ranking of the remainder of the top 10 was influenced by the merger and acquisition activity seen in 2005
• The market is forecast to grow over the next five years although the increase in subscribers will be modest
  • Individual subscriber numbers are expected to fall but group subscribers will grow modestly
  • Premium rates inflation will be highest in the individual sector throughout the forecast period
  • The total PMI market will be worth £3.9 billion in GEP terms by 2012
• Table of Contents
• Table of figures
• Table of tables
• Market Context
  • Introduction
  • The UK PMI market grew by 2.9% in 2006, driven by increases in subscribers and premiums
    • Premium income for UK private medical insurance grew to £3 billion in 2006 in GEP terms
    • PMI subscriber numbers increased in both sectors in 2006
    • Premium rates fell in the group sector and grew only slowly in the individual sector in 2006
  • The health insurance market grew its profit in 2006 and insurers bought less reinsurance
    • The underwriting profit increased for the UK health insurance market in 2006
    • UK health insurers ceded less premiums to the reinsurance industry in 2006
  • The individual and the group markets are dealing with different key challenges
    • The individual sector is concerned with lowering costs to attract more policyholders
      • Insurers can use a number of measures to lower the cost of premiums
      • Insurers can also introduce new cheaper policies specifically aimed at attracting new customers
    • The group sector is concerned with developing wellness propositions to complement PMI offerings
• Customer Focus
  • Introduction
  • Uptake of PMI remains relatively low, with most consumers not interested in the product
    • Only around 12% of consumers have private medical insurance
    • Interest in the insurance remains low among those that currently do not have private medical insurance
    • Cost of cover is the main reason given by consumers for not wanting private medical insurance
  • Most consumers with PMI are between 45 and 54 in age and fall into the highest income brackets
    • Penetration rates are highest among consumers aged 45 to 54
    • Uptake of PMI is highest among wealthy consumers
  • PMI is mainly arranged via employers but distribution arrangements vary by age
    • A growing majority of consumers with PMI arrange it through their employer
    • Arrangements of PMI through employers peak among consumers aged 25-34 and falls thereafter
      • Employers pay for all or part of the majority of consumers' PMI
    • The telephone is the most popular method among those that do not arrange cover via employers
    • New distributors entered the market in 2007 in the form of Tesco and Boots
      • Tesco entered the PMI market in 2007 in partnership with AXA PPP
      • Boots launched a PMI product in April 2007 partnering with PruHealth
      • The entry of Tesco and Boots into the market could boost individual policy numbers
  • The top 10 PMI advertisers spent a total of £27m in 2006, focusing on direct mail advertising
    • Only three of the top 10 advertisers increased their advertising spend between 2005 and 2006
    • Direct mail was the most popular medium for advertising PMI in 2006, although some favor TV advertising
• Competitive Dynamics
  • Introduction
  • BUPA and AXA remained market leaders in 2006, while M&A activity influenced the top 10
    • BUPA and AXA lead the PMI market, writing significantly more business than their nearest competitors
    • The ranking of the remainder of the top 10 was influenced by the merger and acquisition activity seen in 2005
  • BUPA, AXA and Norwich Union are the main players in the individual PMI market
    • The individual market is dominated by BUPA, AXA and Norwich Union
    • The rest of the top 10 are relatively small and only a few increased their market share in 2006
  • BUPA and AXA dominate group PMI, with other players remaining small in market share terms
    • BUPA and AXA were also the market leaders in the group PMI market in 2006
      • BUPA sold its hospitals in 2007 and announced new deals in the group market
      • AXA increased its market share by 0.7 percentage points in 2006 and is looking to grow further
    • Some smaller players in the group market achieved increases in GWP but remain small in market share terms
• The Future Decoded
  • Introduction
  • Two forecast scenarios will be presented reflecting different views on the individual market
    • The main factors that influence the size of the PMI market are subscriber numbers and pricing strategies
    • Two scenarios will be presented with different assumptions about future subscriber numbers
    • Changes to NHS funding could influence future GWP growth but this has not been included in this forecast
  • In scenario one, the number of individual subscribers will fall in the forecast period
    • A range of factors influence GEP in scenario one
    • In scenario one, individual subscriber numbers are expected to fall but group subscribers will grow modestly
    • Premium rates inflation will be highest in the individual sector throughout the forecast period
    • The total PMI market will be worth £3.9 billion in GEP terms by 2012
  • In scenario two, an increase in individual subscribers will lead to stronger GEP growth
    • A range of assumptions influence the GEP forecast in scenario two
    • In scenario two, the number of individual subscribers are set to grow following the increase seen in 2006
    • Individual average premiums will rise slower as new cheaper policies become more popular
    • The PMI market is forecast to grow to a value of £4.2 billion by 2012 in scenario two
• Appendix
  • Supplementary data
  • Definitions
    • Premium income measures
      • Earned premiums
      • Gross Premium
      • Net Premium
      • Written premiums
    • 2005-06 definitions for lines of business
      • Accident & health
      • Medical expenses
      • HealthCare cash plan
      • Travel
      • Personal accident or sickness
    • Pre-2005 definitions of accident and health
      • Individual accident and health
      • Group accident and health
    • Competitor data
      • GWP versus GEP reporting
      • Home-Foreign, overseas and facultative reinsurance business
    • Advertising statistics
    • Ipsos MORI methodology and contacts
      • Sample design
• Further reading
• Ask the analyst
• Datamonitor consulting
• Disclaimer

• Table 1: UK private medical insurance GEP by sector, 2002-06 (£m)
• Table 2: UK PMI subscribers and people covered by policy type, 2002-06
• Table 3: UK PMI average policy premium by policy type, 2002-06 (£)
• Table 4: UK health insurance market underwriting result, 2002-06 (£m)
• Table 5: UK health reinsurance ceded and reinsurers' share of claims, 2002-06 (£m)
• Table 6: PMI distribution by platform, 2007 (%)
• Table 7: PMI distribution by platform for consumers who did not arrange their policies via employers, 2007
• Table 8: Top 10 UK PMI advertisers, 2005-06 (£)
• Table 9: Top 10 UK PMI advertisers' spend by medium, 2006
• Table 10: Top 10 UK PMI insurers by market share, 2002-06
• Table 11: Top 10 UK PMI insurers by premium income, 2002-06 (£000s)
• Table 12: Top 10 UK individual PMI insurers by market share, 2002-06
• Table 13: Top 10 UK individual PMI insurers by premium income, 2002-06 (£000s)
• Table 14: Top 10 UK group PMI insurers by market share, 2002-06
• Table 15: Top 10 UK group PMI insurers by premium income, 2002-06 (£000s)
• Table 16: Factors affecting future PMI GEP, 2007e-12f, scenario one
• Table 17: UK PMI subscriber forecast, scenario one, 2002-12f (000s)
• Table 18: UK PMI average premium forecast, 2002-12f, scenario one (£)
• Table 19: UK PMI GEP forecast, scenario one, 2002-12f (£m)
• Table 20: Factors influencing the size of the UK PMI market, 2007-12, scenario two
• Table 21: UK PMI subscriber forecasts, 2006-12, scenario two (000s)
• Table 22: UK PMI average premium forecast, scenario two, 2002-12f (£)
• Table 23: UK PMI GEP forecast, 2006-12, scenario two (£m)
• Table 24: UK advertising expenditure by media, top 10 highest spending private medical insurers, 2005 (£)

• Figure 1: GEP increased for both individual and group PMI in 2006 in the UK
• Figure 2: The number of group and individual PMI subscribers increased in 2006 in the UK
• Figure 3: The average premium rose for individual PMI policies but fell for group policies in 2006 in the UK
• Figure 4: Both the underwriting result and NWP improved in 2006 for the UK health insurance market
• Figure 5: Private medical insurance was the most popular type of health insurance in 2007
• Figure 6: Most consumers without PMI are not interested in buying cover in the future
• Figure 7: Many consumers without PMI think that this insurance is too expensive
• Figure 8: Uptake of PMI is highest among consumers aged 45-54
• Figure 9: PMI update rises in line with the household income of consumers
• Figure 10: Most consumers with PMI arranged this cover via employers in 2007
• Figure 11: The importance of employers in distributing PMI peaks among consumers aged 25-34
• Figure 12: Employers paid all or part of the premiums for most consumers with PMI in 2007
• Figure 13: The telephone was the most popular means of arranging PMI for those that did not arrange cover through their employer in 2007
• Figure 14: BUPA was the largest PMI advertiser in 2006 by a significant margin
• Figure 15: Most UK PMI advertisers focus their efforts on direct mail and television campaigns
• Figure 16: BUPA and AXA dominated the UK PMI market in 2006
• Figure 17: BUPA and AXA dominated the UK individual PMI market in 2006
• Figure 18: BUPA and AXA dominated the group PMI market in 2006
• Figure 19: The number of group PMI subscribers is forecast to grow in scenario one
• Figure 20: Average premiums are forecast to grow fastest in the individual market in scenario one
• Figure 21: The group PMI market is forecast to outgrow the individual market in scenario one
• Figure 22: Both individual and group subscriber numbers are expected to grow in scenario two
• Figure 23: The average premium growth forecast in scenario two for the individual line is lower than in scenario one
• Figure 24: Individual PMI will outgrow group PMI in scenario two