UK Healthcare Cash Plans 2008

Table of Contents

• Overview
  • Catalyst
  • Summary
• Executive Summary
  • The healthcare cash plan market was worth approximately £550 million in 2007
    • The market expanded in GWP terms in 2007
    • There were an estimated 4.8 million lives covered by cash plans in 2007
    • The market features a high level of underwriting by mutual insurers
    • Some cash plans are now offering PMI-type benefits
  • Cash plan providers reduced marketing outlays in 2007 with the principle market continuing to be older consumers
    • The majority of cash plan consumers are over the age of 45
    • Healthcare cash plan providers devoted less money to marketing and advertising in 2007
  • Simplyhealth Group dominates the healthcare cash plan market
  • The UK healthcare cash plans market is forecast to grow steadily at an average rate 2.3%
    • The market will reach a value of £615 million in 2012 with constant penetration rates
• Table of Contents
• Table of figures
• Table of tables
• Market Context
  • Introduction
  • The healthcare cash plan market was worth approximately £550 million in 2007
    • Healthcare cash plans differ from private medical insurance by paying out set amounts
    • The UK healthcare cash plan market was worth £550 million in premium income in 2007
    • There were an estimated 4.8 million lives covered by cash plans in 2007
    • Rising premium rates have also contributed to higher premium income
  • The healthcare cash plan market was profitable in 2007
    • The market features a high level of underwriting by mutual insurers
    • Dental and optical claims remain the most common claims
  • Cash plan providers have expanded benefits to offer more to corporate and individual clients
    • Many providers now offer health screening as part of their cash plan package
    • Employee assistance programs have become important benefits for the corporate scheme market
    • WPA launched mycancerdrugs
    • Some cash plans are now offering PMI-type benefits
• Customer Focus
  • Introduction
  • The majority of cash plan consumers are over the age of 45
    • Corporate schemes remain the mainstay of the market, with all large distributors maintaining relationships with a variety of partner firms
    • The majority of cash plan consumers are over the age of 45
  • Healthcare cash plan providers spent £4.0 million on advertising in 2007 with Simplyhealth companies dominating marketing
    • Healthcare cash plan advertisers spent £4.0 million in 2007
    • Simplyhealth was responsible for over 70% of advertising spend in 2007
    • The majority of large cash plan advertisers maintained press campaigns
• Competitive Dynamics
  • Introduction
  • Simplyhealth Group dominates the healthcare cash plan market
    • Simplyhealth is the market leader with 46.3% of the market
    • Westfield Health increased its market share with a string of new policies for the corporate market
    • AIG has increased its presence in the market
    • BHSF maintained its market share of 5.4% in 2007
    • AXA saw significant growth in premium income in 2007 as it renewed former Legal & General customers
    • Medicash continued to grow its market presence though a series of corporate deals
    • Great Lakes grew its premium income in 2007
    • HSF, BUPA and Personal Assurance saw market share reductions in 2007
• Future Decoded
  • Introduction
  • The UK healthcare cash plans market is forecast to grow steadily at an average rate 2.3%
    • The market will reach a value of £615 million in 2012 with constant penetration rates
  • Increasing penetration rates can generate annual growth of 3.9%
  • Falling penetration rates will result in a market contraction as premium rate increases fail to offset fewer subscribers
• APPENDIX
  • Supplimentary Data
  • Definitions
    • Premium income measures
      • Earned premiums
      • Gross premium
      • Net premium
      • Written premiums
      • Healthcare cash plan
  • Methodology
    • Ipsos MORI methodology and contacts
      • Sample design
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
• List of Tables
  • Table 1: UK healthcare cash plan policyholders by age, 2005−07
  • Table 2: UK healthcare cash plan advertising spend, 2005−07 (£)
  • Table 3: Top 10 UK healthcare cash plan advertisers, 2007
  • Table 4: Top 10 UK healthcare cash plan competitors, 2007
  • Table 5: Key variables affecting healthcare cash plan GWP
  • Table 6: UK healthcare cash plan GWP, neutral scenario, 2007−12f
  • Table 7: UK healthcare cash plan GWP, optimistic scenario, 2007−12f
  • Table 8: UK healthcare cash plan GWP, pessimistic scenario, 2007−12f
  • Table 9: UK healthcare cash plan competitors by premium income and market share, 2007
• List of Figures
  • Figure 1: Consumers over 45 form the majority of healthcare cash plan policyholders
  • Figure 2: Healthcare cash plan providers spent over half of their advertising budget on TV in 2007
  • Figure 3: Simplyhealth is the dominant player in the market
  • Figure 4: The market will grow marginally if penetration rates remain the same
  • Figure 5: Growth in penetration rates will lead to steady growth in the market
  • Figure 6: The market will stagnate if penetration rates fall