Health Shield – the award-winning health cash plan provider – has strengthened its position by increasing its market share by income from £27m in 2013 to £29m in 2014, according to Laing & Buisson.
The Health Cover UK Market Report 2015 revealed that the non-profit making Friendly Society has shown the strongest organic growth in recent years, being the only cash plan provider in the top four to have increased its market share by income each year since 2008.
The past year has been one of strong financial results and innovation for Health Shield. The firm paid 446,268 claims in 2014, representing 97.4% of all claims made during the year. In addition Health Shield saw:
- 7% rise in earned premiums
- 26% increase in new members and an 19% increase in total members
- 75% of annual contributions paid back to members in benefits
- 14% increase in employees from 110 to 126 staff
- 99% member satisfaction for claims service
Health cash plans funded by individuals accounted for 68.5% of total market demand in 2014 according to the market report. Health cash plans funded by companies accounted for 31.5% of total market demand.
During 2014, strong growth has seen company paid contributors overtake employee paid as the largest corporate source of cash plan sales for the first time on record. The report indicated employee paid schemes have been on a downward trend since 2007. However, strong growth in employer paid new business has displaced the scope of traditional employee paid schemes, and Laing & Buisson predict this trend is likely to continue in the medium term.
Philip Wood, executive director for sales and marketing at Health Shield, said: “Health cash plans are an affordable and flexible benefit, which is why they are becoming increasingly popular with employers. Health Shield’s continued strength in the cash plan market proves that our innovation, dedication to customer care and corporate sales strategy through intermediaries is paying off.”
The Health Cover UK Market Report is published annually by Laing & Buisson – the provider of information and market intelligence on the independent health, community care and childcare sectors.