Rising premiums in private medical insurance (PMI) is driving customers away, according to Datamonitor.
In its report 'UK Health Insurance 2002', Datamonitor said the rise in premiums is being driven by both an "increase in the number of claims being made and in the cost of those claims".
Insurers are trying to cut costs through better claims management, but the real opportunity to increase subscription levels lies in developing new products that have lower premiums.
Between 1996 and 2001 the number of individual policyholders fell by 191,000. Datamonitor says this has been due to escalating premiums, which has rendered PMI too expensive for the majority of the population.
Individual policyholders suffer higher increases in premiums because they cost the insurance companies more in claims than the group market, said the survey.
In 2000 the mean annual claim for the individual market was £758, which represented a 10.2% increase on 1999's levels.
For more details contact Datamonitor sales on 44 207675 7487. The report is priced £1495.
