General Insurance Article - Increased demand for private medical insurance after COVID19


COVID-19 has put the NHS under tremendous strain, which has created a backlog of cases that will see demand for private medical insurance increase as social distancing measures ease, according to GlobalData, a leading data and analytics company.

 GlobalData’s 2019 UK Insurance Consumer Survey indicates that 29% of private health insurance customers purchased a policy due to concerns regarding NHS waiting times, an increase of 15 percentage points when compared to 2018. Research by the NHS Confederation has projected that the NHS waiting list is expected to rise from its current level of 4.2 million to ten million by Christmas 2020. Such an increase is likely to result in a surge in demand for private health insurance in the UK.

 Daniel Pearce, Senior Insurance Analyst at GlobalData, commented: “Before COVID-19, growing concerns about NHS waiting times had clearly played a considerable role in driving people to purchase private medical insurance policies. Yet, the increased strain that the pandemic has placed on the NHS has the potential to increase the uptake of private medical insurance policies further, particularly given the intensified mainstream media attention on delays to treatment.”

 However, the increased interest in policies will not convert fully into sales of policies due to the current economic climate in the UK. With employment security being a growing concern for many, adding a new expense will not be an easy choice to make, particularly as GlobalData’s survey indicates the average monthly cost of a single private medical insurance policy to be £49.26.

 Pearce continues: “In the longer term, the private medical insurance market should expect to experience an increase in demand, as the time taken for the NHS to become fully operational again and begin working on delayed cases could outweigh the economic uncertainty faced by households.”
  

Back to Index


Similar News to this Story

PwC predict insurances losses will be less than Storm Ciara
Mohammad Khan, General Insurance Leader at PwC UK comments on the predicted insurance losses due to widespread flooding across England and Wales.
Home insurance prices drop by largest amount since 2018
The average cost of home insurance has dropped by the largest amount in a single quarter since 2018, according to research by MoneySuperMarket.
Businesses increasingly concerned about reputational risk
In its 2020 Reputational Risk Survey published late last year, Willis Towers Watson (NASDAQ: WLTW), a leading global advisory, broking and solutions c

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.