PMI:Changes to the NHS may pose a threat to the private medical insurance (PMI) market, according to Laing and Buisson's latest report.
Changes to the NHS may pose a threat to the private medical insurance (PMI) market, according to Laing and Buisson's latest report.
The annual study, published in July, suggested that health insurance providers could face a tougher future as the public healthcare system becomes more flexible and patient orientated.
Discussing the report, its author and economist, Philip Blackburn, said: "In the long term, a public health service where waiting has less significance and where patient choice is a central theme, certainly poses some threat to the private market." Blackburn believes the industry would have to adapt and innovate to meet consumer demand in the future, while at the same time keeping products affordable.
Laing and Buisson's report showed that spending on health and care cover products in the UK reached £4.2bn in 2004.
Some £3.4bn of that sum was spent on PMI and self-insured corporate medical schemes.
Additionally, £425m was spent on cash plans, £274m on dental benefit plans and £136m on long-term care products.
Commenting on the findings, Mike Hall, chief executive at Standard Life Healthcare, argued the latest figures showed there is enough appetite for both a public and private sector.
"There is clearly a place in Britain for an improved NHS and an innovative private health market.
The success of the private health market shows that we truly have a mixed economy in UK healthcare and we see ourselves as complementing the NHS." he said.
