Debate over 'gloomy' future of the market at Laing & Buisson conference
The private medical insurance (PMI) sector must innovate if it is to continue to remain a viable solution for consumers, according to speakers at Laing & Buisson's annual Private Healthcare Insurance Conference.
Recently, falling sales and rising premiums in the market, have caused industry spectators to suggest the sector is heading towards a gloomy future. However, Stephen Flanagan, commercial director at BUPA UK Membership, dismissed this charge.
Speaking at the conference, Flanagan hit back at critics about the future of the market. "Reports of the industry's death are indeed greatly exaggerated. In fact, the case is quite the opposite."
Flanagan backed his view by pointing towards recent findings by Manson Warner Healthcare, which suggested 29% of UK employees believe healthcare is the most attractive benefit that could be offered by an employer.
That said, while Flanagan highlighted the potential held in the corporate market, he admitted the sector as a whole is facing some tough challenges. "Many people think private medical insurance is too expensive, and many people think we are insufficiently innovative. There is no doubt that the improvements in the NHS will mean that some of our customers may lapse," he said.
However, after years of debate and calls for innovation, and with very little being done to move the market forward, others remained less optimistic. Karol Sikora, professor of cancer medicine at Imperial College, suggested rising costs will continue to remain an obstacle to PMI sales.
"I would forget private medical insurance because it is simply too expensive. Instead, I would create a personal health fund of £10,000 and put the money into a building society," he said.
