While residents and some expats are covered by the National Health System, overseas visitors (including those staying with family, visiting on business, as a tourist, or residing illegally) will generally be charged for hospital treatments. As such, insurance premiums can be impacted by the movement of migrants into the UK whose residency does not yet make them eligible for the NHS. Beyond that, those looking for better access and shorter wait times will often purchase private insurance.
The UK’s IPMI inflation in 2016 was 8.20%, down from 9.60% in 2015. It mirrors IPMI drops in both Kenya and Brazil for the past year, and returns close to premium inflation seen in 2013. The country’s year-on-year Consumer Price Inflation shrank to 0.78% (as of June 30). It would appear that last year’s spike in IPMI, inflation has since returned to better following the consumer price trend decline from the past few years.
While the constant drivers continue to have a significant impact on the UK’s IPMI, we believe the following country-specific points are of note:
- Long and short term pressures on health services - The long-term tightening of government spending in the NHS public health system of the UK, caused by a tough economic decade, has recently led to unrest by health staff and growing public debate on the publicly funded future of the service. For patients, the economic times have delivered a current system that poses considerably long wait times, lower staff to patient ratios as the country’s populations increase and age, and increasingly outsourced services compared to before. For a nation familiar with a generous public system, its current state may be enough of a push for some to consider private medical insurance for improved access and services.
- Consumers demanding better prices - Reports have noted that companies are increasingly offering employees private plans to meet demands for non-NHS care, while the concept of data sharing in exchange for a pricing benefit is growing particularly around the millennial market. This has spawned greater demand for more affordable products which may be having a direct impact on the cost of IPMI for 2016.