The United Kingdom
health insurance market is expected to be driven by rising private medical
insurance premiums and rising daycare procedures, including the cost of
everything from the electricity used to light the operating theatre to the
meals, which will boost the market demand for health insurance during the
forecast period.
Furthermore, improved
medical treatment, such as new drugs, operations, and the introduction of new
techniques, are constantly increasing the demand for health insurance because
of rising costs, which will drive the sustainable growth of the health
insurance industry in the United Kingdom during the forecast period.
In 2022, Bupa will
collaborate with the online platform JAAQ on a six-month trial to improve
online access to personalized expert-led health advice. This is in addition to
Bupa's mental health support, which provides continuous, around-the-clock
assistance for various mental health conditions, such as anxiety, depression,
and addiction.
In 2022, AXA UK&I
acquired renewable rights to Ageas UK's commercial business for an initial
consideration of USD57.14 million. This acquisition will help AXA's growth
strategy and commitment to commercial business customers and broker
partnerships, particularly in the SME and Schemes market segments. As part of
the deal, approximately 100 Ageas UK employees will be transferred to AXA
Commercial to provide ongoing support and service delivery.
Improved Government
Insurance Services to Boost the Market.
The National Health
Service is a government-sponsored universal healthcare system in the United
Kingdom (NHS). The National Health Service was established in 1946 and is in
charge of the UK's public healthcare sector. All permanent inhabitants have
access to free healthcare through the National Health Services. The cost of
healthcare is covered by general taxes and is free at the point of need. In
2021, government healthcare spending was expected to rise by 7.5% (in nominal
terms). Approximately 11.9 percent of the UK's GDP (Gross Domestic Product) is
spent on healthcare.
However, it is projected
that current healthcare spending will reach USD338.90 billion in 2021, an
increase in nominal terms of 7.4% compared to 2020. Similarly, non-government
healthcare spending is expected to rise by 7.0% in nominal terms by 2021.
Rising Demand for
Private Medical Insurance to Boost the Market Demand
The increase in NHS
(National Health Services) waiting times and referrals to the private sector
gradually increases the market demand for private health insurance. Nowadays,
health coverage is an essential aspect among consumers. The Association of British
Insurers (ABI) reported that 1.7 million persons in the United Kingdom had
private health insurance (PMI). As a result, consumers generally choose private
health care for specific or rare conditions not covered by the public health
care program. Hence, Private medical insurance will frequently provide access
to new and expensive medical treatments, particularly cancer drugs and
therapies, that the NHS (National Health Services) deems too costly. As a
result, the UK's private health insurance premiums are the most noticeable in
the health insurance market, and their demand has risen, which will increase
the market demand for the health insurance industry in the United Kingdom..
Providing Health
Insurance to their Employees by Various Companies will Boost the Market Demand
As part of their
benefits packages, companies provide private health insurance to their
employees. When it comes to offering health benefits to their employees,
employers' prioritize their employees' health and wellness. In the United
Kingdom, up to 45% of employers intend to include employee health and
well-being into company goals within three years of the company's formation.
With rising income-producing employers and increased awareness of the extensive
health coverage available, this segment is expected to boost the market demand
for the health insurance sector during the forecast period.