United Kingdom (UK) Private Medical Insurance Distribution Dynamics and Future Market, 2022 Update

United Kingdom (UK) Private Medical Insurance Distribution Dynamics and Future Market, 2022 Update

Summary

This report explores how consumer purchasing preferences for private medical insurance have changed over time. It discovers what is most influential to customers when purchasing a policy and reveals the most popular providers in the market. New trends and innovations are highlighted, as well as the key factors that will influence the market over the next few years.

Visiting a price comparison website before purchasing a private medical insurance policy is still an important activity, but it did see a decline of 5.6pp in 2022 compared to 2021. More than 20% of customers preferred not to take any actions prior to purchasing a policy. The share of brokers decreased by 5.1pp in 2022 compared to 2021. This signifies the increasing customer preference for purchasing a policy via the direct channel in 2022.

Scope

• Hospital charges (44.2%), cover for specialist/consultant fees (40%), and minor surgeries (37.9%) are the features most sought after by private medical insurance customers.
• Consumers are more concerned about their ability to meet financial commitments such as credit card dues, monthly bills, mortgage, rent, and paying for long-term care services amid the cost-of-living crisis in the UK.
• Bupa was the leading provider of PMI in the UK in 2022, with AXA in second place. Bupa recorded an increase of 1.8pp in its market share due to improved loss ratio and profitability.

Reasons to Buy

• Understand consumer purchasing decisions and how these will influence the market over the next few years.
• Improve customer engagement by recognizing what is most important to them and how to adapt products and services to meet their needs.
• Compare the Net Promoter Scores of key insurance providers.
• Discover which providers lead the way in the PMI space and learn about new product innovations.
• Adapt your distribution strategy to ensure it still meets customer purchasing behaviors.