The number of people with private medical insurance fell during 1999 on the back of higher premiums ...
The number of people with private medical insurance fell during 1999 on the back of higher premiums and the absence of tax breaks.
According to Laing & Buisson's survey of the sector, around 6.4 million people were covered by PMI at the end of 1999, representing a fall of 4.5% compared with the same point in 1998.
The fall in demand was concentrated on individual business, which was down 5%, while corporate PMI saw growth of 1.2% in terms of the number of people covered.
Philip Blackburn, the economist who wrote the report, entitled Private Medical Insurance - UK Market Sector Report 2000, said: "High individual price increases and the absence of tax concessions have dampened individual demand for PMI in the last three years. Conversely, competitive pricing and increased marketing of corporate PMI packages have driven growth in the volume of company paid demand.
"In the near term, increased penetration of PMI is likely to continue in the company sector, given favourable economic conditions and employers' attitudes to PMI, albeit at a slower rate due to a general hardening of company paid prices and the imposition of employers' National Insurance on employer-purchased PMI.
"Given high premium increases for individuals in 2000, there is little sign that the downward trend in PMI demand by individuals will stop, although some moderation in individual prices in 2001 and 2002 is likely to stabilise demand."
