1 / 16

PRIVATE MEDICAL INSURANCE - DEVELOPMENTS

The Actuarial Profession. making financial sense of the future. PRIVATE MEDICAL INSURANCE - DEVELOPMENTS. The 2002 Healthcare Conference University of Warwick, 29 September - 1 October 2002 Neil Hilary. Framework: The decision to buy PMI The State The insurers Over to you.

Download Presentation

PRIVATE MEDICAL INSURANCE - DEVELOPMENTS

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. The Actuarial Profession making financial sense of the future PRIVATE MEDICAL INSURANCE - DEVELOPMENTS The 2002 Healthcare Conference University of Warwick, 29 September - 1 October 2002 Neil Hilary

  2. Framework: The decision to buy PMI The State The insurers Over to you Ha PMI to discuss PMI

  3. Why buy PMI? The NHS is getting worse! I want my own doctor My brother had a terrible time in the local Trust I don’t want (can’t afford) to wait I want hotel accommodation I can afford to pay The Decision Framework

  4. What puts me off buying PMI? The NHS is getting better! PMI is too expensive What will I be paying in two years’ time? There are too many exclusions I have to clear everything with them first Why should I pay twice for healthcare? Private healthcare is morally wrong The Decision Framework

  5. The buying public is looking closely at: The NHS and government commitments The private sector’s insurance alternatives The stability of the pound in his pocket The Decision Framework

  6. To provide a personalised service offering the standards that patients expect and staff want to provide Change on this scale will take a long time as we expand and develop the NHS Overall vision is to create a service designed around the patient or user - this will require investment and reform Must focus on better treatment and care, faster and easier access The State and the NHS Plan

  7. By end 2005, reduce max outpatient wait to 3 months and max inpatient wait to 6 months Patients to receive treatment at a time that suits them in accordance with their clinical need: 100% pre-booking by end 2005 Improved clinical quality across primary and secondary care Improved standards of accommodation, cleanliness and food (24hr food service) The State and the NHS Plan

  8. 15,000 more GPs and consultants, 30,000 more therapists and scientists, and 35,000 more nurses, midwives and health visitors Explicit patient choice (Scandinavian system) Patients have info on alternative providers, to switch to hospitals with shorter waits Hospitals locally or elsewhere, diagnostic and treatment centres, hospitals private or overseas Use private providers where they genuinely supplement capacity of NHS and offer value for money - expanding choice and promoting diversity in supply, particularly for elective surgery Delivering the NHS Plan

  9. Healthcare should be available on the basis of need, not the ability to pay Any capacity used in the private sector must augment, not subtract from, the number of precious skilled clinical staff already working in the NHS Recognising that the private health provider sector in the England is relatively small, overseas providers of healthcare will be brought into the country - with their own clinical teams - to establish services for the NHS Delivering the NHS Plan

  10. Market environment tighter financials in recessionary mindset no further consolidation (QBE, Iron Trades?) view of NHS at least no worse internet players sales regulation from 2004 The Insurers’ Response

  11. Market statistics 2001 (Laing & Buisson): Subscribers: 3.71m (up 1%) Persons covered: 6.66m (down 3%) Premium revenue: £2,657m (up 8.2%) Claims incurred: £2,066m (up 6.4%) Penetration: 11.1% of UK pop (down from 11.5%) Less than one-third is individual 57% through intermediaries No major changes in statistics expected in 2002 The Insurers’ Response

  12. Move to increasing excesses Reduce premium(old) Discourage small claims (old) Encourage use of NHS (old) Now serious alternative product to enable individuals to manage their own risk (new) £5,000 pa excess can reduce premium by 80% Lifetime excess of £5,000 -> then fully covered Excess per claim may mislead Product Responses

  13. Move to guaranteeing premiums 10% annual increase is still with us and very much a factor in the lack of growth in individual sector One major player now offers 5 and 10 year gtees Premiums rise only after 5th or 10th renewal But to what level? Differential is probably too high for purchaser …. …. but too low for the actuary Combined with excesses to disguise impact Investment? Reserving? Product Responses

  14. Other Variations from the Traditional No age-related premium increases NCDs NHS waiting list plans You pay a proportion of total costs up to a max Risk assessment based on lifestyle, occupation, age and location Include more (e.g. CIC, travel, savings element) -> expensive enough already? Combination of PMI and Cash Plan (in NHS) Preferred provider arrangements (e.g. paybeds) Product Responses

  15. How many of their ambitious targets will the NHS achieve? Will this remove PMI as a viable alternative? What does the public really want as choice? Are insurers moving in the right direction? Are we seeing innovation or merely tinkering? Can reinsurance or derivatives help? Do we have to wait for the Govt to admit that they cannot fund acute healthcare alone? Can insurers survive without own hospitals? Is the future in internet sales? The Future (is on Orange, not red nor green?)

  16. The Actuarial Profession making financial sense of the future PRIVATE MEDICAL INSURANCE - DEVELOPMENTS The 2002 Healthcare Conference University of Warwick, 29 September - 1 October 2002 Neil Hilary

More Related