The number of consumers taking out private medical insurance continues to fall according to analysts Datamonitor.
In its UK Health Insurance 2002 report, Datamonitor says rising premium levels are scaring away customers, a trend that will continue unless the industry finds a way to slow this increase in prices.
Datamonitor predicts providers will bring new, simpler products to market which have lower premiums and therefore will bring customers back to the industry.
Author of the report Fiona O'Regan says: “Many providers believe that merely investing vast quantities of money in the NHS might not be enough to overcome the fundamental problems crippling this service. This will drive people to make provisions for their health care. As customer awareness of the new, more affordable products increase, the PMI market will enjoy rising numbers of policyholders, which will in the medium to long term serve to revive this stagnant market.”