UK Health Insurance Market Size
|Base Year For Estimation||2022|
|Market Size (2023)||USD 5.81 Billion GBP|
|Market Size (2028)||USD 7.28 Billion GBP|
|CAGR (2023 - 2028)||4.60 %|
*Disclaimer: Major Players sorted in no particular order
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UK Health Insurance Market Analysis
The United Kingdom Health And Medical Insurance Market size is estimated at GBP 5.81 billion in 2023, and is expected to reach GBP 7.28 billion by 2028, growing at a CAGR of 4.60% during the forecast period (2023-2028).
The market for private healthcare services is projected to reach USD 13.8 billion by 2025 due to the rise in NHS waiting times and referrals to the private sector. Health coverage has become the highest public priority. By voters, healthcare is most frequently cited as the most important aspect of government spending. The NHS has, thus, become a protected department, with the awareness of all political parties about NHS spending on overall health coverage. According to the data published by the Association of British Insurers (ABI), 1.7 million people in the United Kingdom had private medical insurance (PMI). The NHS across the United Kingdom spent nearly GBP159 billion in 2018/19. This is equivalent to GBP 2,300 for every person in the UK and represents 7.1% of the UK GDP.
During the Pre-COVID years from 2016- 2020, household expenditure on all lines of insurance observed a continuous decline, but as the virus spread globally at the end of 2020 and people start realizing the importance of Insurance household expenditure on insurance lines observed an increase from the level of GBP 19,483 million in 2020 to GBP 20,003 million in 2021.
The United Kingdom has a coexistence of public hospitals, private non-profit hospitals, and private for-profit hospitals. While hospitals are mainly publicly owned and independently operated, they are organized as hospital trusts with three hierarchical levels: community hospitals, district hospitals, and regional or inter-regional hospitals, as well as several specialized hospitals offering advanced treatment. In line with the EU average, health services are predominantly financed from general taxation.
The industry currently boasts a total annual turnover of over GBP 70 billion. Around GBP 30 billion of this is made up from exports, meaning the demand for an international supply of British life science goods and services continues to thrive. Health businesses who choose Britain for their life sciences ventures will find they have access to widespread financial opportunities through the City of London and the venture capital community.
UK Health Insurance Market Trends
Global Economic Slowdown and Better Government Insurance Services Affecting the United Kingdom Health and Medical Insurance
Private Medical Insurance – medical cover subscribers comprise 11% of the population. Total spending on the UK private medical cover, which includes insured and self-insured healthcare trusts, grew. Unlike other countries where the government and private providers see one other as competitors, healthcare in the United Kingdom is free and mostly compensated by the taxpayer. In the United Kingdom, public-private health care complements one another. 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.
Significant developments in premiums believe the underlying trends in demand. Factors driving the apparent shift in attitudes include improved levels of satisfaction with NHS, increased public healthcare spending, and deterioration in labor market conditions. The consumer shift away from private medical insurance is unlikely to be fully reversed.
The current volatile economic scenario does not prescribe continued growth in the category. However, the demand for lower-cost policy coverage has propelled growth in the popularity and availability of cheaper healthcare cash plans and self-pay options for one-off treatments.
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Employee Sponsored Health Coverage is Affecting the United Kingdom Health and Medical Insurance Market
NHS has always ensured that the United Kingdom maintains an extensive social security system. The UK economy has a problem due to its present political crisis. However, it possesses robust economic growth, with low inflation and low unemployment rates as a huge plus. Employers consider health and wellness as a prime objective in providing health benefits to their employees. In the United Kingdom, up to 45% of employers aim to include the health and well-being of employees in their company goals within three years of the company's formation. With rising income-producing employers and growth in the awareness of the extensive health coverage offered, this segment is expected to exhibit prominent growth during the forecast period.
The UK employees receive fundamental health and retirement coverage via government programs and gain wide access to a well-established financial services industry, which offers consumers a broad set of choices in private health care, insurance, and investment products. Due to the availability of these resources, workers in the United Kingdom express far less concern than the US employees regarding financial issues ranging from having enough money to live on (44% of UK employees, as compared to 59% in the US) to being able to afford relevant health insurance for self and one’s family (28% in the United Kingdom and 57% in the United States).
UK Health Insurance Industry Overview
Despite being a concentrated market, the lack of competition among private hospitals has constrained insurers' bargaining power, thereby resulting in inflated claims costs. Coupled with the reduction in customer numbers, this has been the biggest driver for premium growth, as insurers responded to the burden on profitability by raising prices for customers.
AA, Aviva, BUPA, Direct Line, RAC, Admiral, AXA, and Sainsbury's bank were among the leading insurance companies in the United Kingdom in Q2-2022 by brand awareness. With this, NHS reforms are expected to advance the role of private healthcare in the insurance sector creating an opportunity for these firms to increase market share in Health and Medical insurance.
UK Health Insurance Market Leaders
Freedom Health Insurance
*Disclaimer: Major Players sorted in no particular order
UK Health Insurance Market News
- On February 2022, AXA UK&I acquired renewable rights to Ageas UK's commercial business at an initial consideration of 47.5 million GBP. This acquisition will strengthen AXA’s growth strategy and commitment to its commercial business customers and broker partnerships, particularly in the SME and Schemes market segments. As part of the agreement, around 100 Ageas UK employees will move to AXA Commercial to provide ongoing support and service delivery.
- On November 2022, in partnership with online platform JAAQ in a six-month trial for boosting access to personalised expert-led health advice online. This adds to Bupa’s mental health support which provides ongoing, around-the-clock support for a wealth of mental health conditions, such as anxiety, depression and addiction
UK Health Insurance Market Report - Table of Contents
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porters 5 Force Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Product Type
5.1.1 Private Medical Insurance
220.127.116.11 Individual Policy Coverage
18.104.22.168 Group Policy Coverage
5.1.2 Healthcare Cash Plans
22.214.171.124 Individual Policy Coverage
126.96.36.199 Group Policy Coverage
5.1.3 Dental Insurance Plans
188.8.131.52 Individual Policy Coverage
184.108.40.206 Group Policy Coverage
5.2 By Procurement type
5.2.1 Self-pay Health Coverage
5.2.2 Employee Sponsored Health Coverage
6. COMPETITIVE LANDSCAPE
6.1 Overview (Market Concentration and Major Players)
6.2 Company Profiles
6.2.2 AXA PPP
6.2.3 PT Astra Aviva Life
6.2.4 Freedom Health Insurance
6.2.5 Cigna Life Insurance Company of Europe SA NV
6.2.6 Simplyhealth Group Ltd
6.2.7 WPA - Western Provident Association
6.2.8 Vitality Health
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE GROWTH PROSPECTS OF THE MARKET
UK Health Insurance Market Research FAQs
How big is the UK Health And Medical Insurance Market?
The UK Health And Medical Insurance Market size is expected to reach GBP 5.81 billion in 2023 and grow at a CAGR of 4.60% to reach GBP 7.28 billion by 2028.
What is the current UK Health And Medical Insurance Market size?
In 2023, the UK Health And Medical Insurance Market size is expected to reach GBP 5.81 billion.
Who are the key players in UK Health And Medical Insurance Market?
AXA, BUPA, WPA, Simply Health and Freedom Health Insurance are the major companies operating in the UK Health And Medical Insurance Market.
UK Health Insurance Industry Report
Statistics for the 2023 UK Health Insurance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UK Health Insurance analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.