How Customers Purchased Private Medical Insurance in 2021?

How Customers Purchased Private Medical Insurance in 2021?

Summary

This report explores how consumer purchasing preferences for PMI have changed over time. It discovers what is most influential to customers when purchasing a PMI 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 PMI market over the next few years.

The medical expenses market declined by 3.2% in 2020. Bupa had the market’s highest share in gross written premiums (GWP) of 31.9%. The purchase of private medical insurance (PMI) in 2021 was influenced by various factors, including financial interests due to age concerns, customized product features, and the impact of COVID-19. Amid the pandemic, virtual services, self-pay care, and concerns over health/wellbeing are on the rise owing to increased NHS waiting times and lockdown measures taken by the UK government.

Scope

• Approximately 24.8% of survey respondents conducted online research through an insurer’s website prior to purchasing PMI in 2021, while 21.3% spoke to a friend for advice.
• Aside from communicating with the employer/HR contact, all pre-purchasing activities recorded increases in 2021, which reflects the fact that consumers were more willing to undertake research via social media, on insurer/broker websites, and by visiting PCWs before purchasing.
• The most popular purchasing method in 2021 was over the phone. However, online methods, including purchases via smartphone, tablets, PCs, provider’s applications, and laptops, constituted 52.1% of all PMI sales.
• 54.9% of respondents bought directly from the insurer, which is a result of the PMI market being dominated by a handful of well-known insurers that all have direct propositions.

• 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 insurers can adapt their 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 behavior.