UK Health and Medical Insurance Market Report 2021: Growth, Trends, Impact of COVID-19, and Forecast to 2026 – ResearchAndMarkets.com

DUBLIN – (COMMERCIAL THREAD)–The “UK Health and Medical Insurance Market – Growth, Trends, COVID-19 Impact and Forecast (2021 – 2026)” the report was added to ResearchAndMarkets.com offer.

The health and medical insurance market is expected to register a healthy CAGR of 5.05% during the forecast period (2021-2026). The private health services market is expected to reach $ 13.8 billion by 2025 due to increasing NHS wait times and referrals to the private sector.

Health coverage has become the highest public priority. Health care is most often cited by voters as the most important aspect of government spending. The NHS thus became a protected department, with awareness of all political parties on NHS spending on comprehensive health coverage.

According to data released by the Association of British Insurers (ABI), 1.7 million people in the UK had private medical insurance (PMI). The NHS across the UK spent almost £ 159bn in 2018/19. This works out to £ 2,300 for every person in the UK and represents 7.1% of UK GDP.

Healthcare UK also helps the NHS fulfill its important role in international health development. Through the Prosperity Fund’s Better Health program, the UK is helping 8 middle-income countries strengthen their health systems as they move towards universal health coverage.

Across the UK there is a coexistence of public hospitals, private not-for-profit hospitals and private for-profit hospitals. Although hospitals are mainly public and independently managed, they are organized into hospital trusts at three hierarchical levels: community hospitals, district hospitals and regional or interregional hospitals, as well as a number of specialist hospitals offering advanced treatments. In line with the EU average, health services are mainly financed by general taxation.

The industry currently has a total annual turnover of over £ 70 billion. Around £ 30bn comes from exports, meaning demand for an international supply of UK life science goods and services continues to flourish. Healthcare companies who choose Great Britain for their life science businesses will find they have access to a wide range of financial opportunities through the City of London and the venture capital community.

Key market trends

PMI wins huge market amid Brexit uncertainties

Private medical insurance – the underwriters of medical coverage represent 11% of the population. Total spending on private medical coverage in the UK, which includes insured and self-insured health care trusts, increased 2.8% in 2015. Unlike other countries where government and private providers see themselves as competitors, healthcare in the UK is free and its mostly taxpayer compensated. In the UK, public-private health care complements each other. Consumers generally opt for private health care only if they need specific conditions or rare conditions that might not be included in the public health care program.

The significant change in premiums contradicts the underlying trends in demand. Factors behind the apparent change in attitude include improving levels of satisfaction with the NHS, increasing public spending on health and deteriorating labor market conditions. The abandonment of private health insurance by consumers is unlikely to be completely reversed.

A recent economic recovery could improve pay and employment conditions, as NHS reforms are expected to favor the role of the private health care and insurance sector, while the UK’s changing demographic profile could increase pressure on the public health system.

The current volatile economic scenario does not predict continued growth for the category. However, the demand for lower cost policy coverage has propelled the growth in the popularity and availability of cheaper health care plans and self-paying options for one-time treatments.

Competitive landscape

Although it is a concentrated market, the lack of competition between private hospitals has limited the bargaining power of insurers, leading to increased claims costs. Coupled with the reduction in the number of clients, this has been the main driver of premium growth as insurers have responded to the burden of profitability by increasing prices for clients.

The abandonment of private health insurance by consumers is unlikely to be completely reversed. Favorable forces can support a modest 2% CAGR for gross premiums written, over the forecast period (2013-2017).

A recent upturn in economic growth could improve wage and employment conditions in the UK. In addition, NHS reforms are expected to advance the role of private healthcare in the insurance sector. On the other hand, the changing demographic profile of the UK may increase the pressure on the public healthcare system.

Bupa continues to be the UK market leader in health and medical insurance, holding over 50% of the market share. Its annual revenue from the health insurance business segment was over 80% in 2017.

Companies mentioned

  • BUPA

  • AXA PPP

  • PT Astra Aviva Life

  • Freedom Health Insurance

  • Cigna Life Insurance Company of Europe SA-NV

  • SimplyHealth Group Ltd.

  • WPA – Western Provident Association

  • Vitality Health

For more information on this report, visit https://www.researchandmarkets.com/r/z04nk9


Source link

Comments are closed.