Health Shield – the award-winning health cash plan provider – has strengthened its position in the UK health cash plan market by increasing its market share by income from £27m in 2012 to £29m in 2013, according to the latest market research from Laing & Buisson.
The Health Cover UK Market Report 2014 revealed that the non-profit making Friendly Society was the only provider in the Top 4 to have increased its market share by income over the past year. Health Shield was also the only cash plan provider in the Top 4 to have increased their market share by income every year for the previous five years.
The past year has been one of strong financial results and innovation for Health Shield. The firm paid 436,640 claims in 2013, representing 97.5% of all claims made during the year. In addition:
- Total membership increased by 15%
- New company schemes increased by 63%
- New members increased by 16%
- Number of claims increased by 7%
- Premium income increased by 9% (£6.4 million in new business sales)
Laing & Buisson projects that a stronger economy will support growth in health cash plans over the next three years (2014-2016 inclusive). Individual/employee paid health cash plans accounted for 72% of total market volume demand at the end of 2013, while company paid health cash plans represented 28% of total market volume.
However, they expect company paid contributors to rise by over 30%, from 730,000 in 2013 to 961,000 in 2016, while individual paid contributors are expected to fall.
Philip Wood, executive director for sales and marketing at Health Shield, said: “The continued improvement in our market share and financials prove that our innovation, quality customer service and marketing strategy to work in the corporate sector through intermediaries is paying off.
“A key strength of health cash plans is their combination of affordability and flexibility, which is why they are becoming increasingly popular with employers as part of a corporate benefits package.
“Our business model is designed specifically to accommodate the corporate market and their financial advisers, which is why our sales figures have been so strong over the last five years.”
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.