Bupa has warned that insurers which act solely as a go-between for patients and hospitals to fund treatment will not succeed in the present market environment.
And the provider added that it saw cut down, lower-cost products to encourage younger customers and coverage for chronic conditions as an important step for the market.
Speaking at the LaingBuisson Private Healthcare Summit, Bupa UK Insurance commercial director Mark Allan said: “The role of just being someone who manages the funding of hospital treatment is over.
“If businesses are just focused on that, while there might be a niche for that, as health insurers we’ve got to have a more broader outlook than that, particularly when operating in corporate and SME markets.”
Allan noted that there were many things for insurers to focus on, this included mental health which has become an “even bigger topic than it was pre-Covid”.
He also suggested there was a role for health insurers to play in helping businesses invest in the quality of their line management and leadership, to help people understand the importance of great leadership and of having a great boss.
“There’s no doubt that putting systems and processes in place is helpful but it really comes to life where managers come to understand the responsibility they have for that compassion and empathetic leadership,” he continued.
“I think health insurers can play a role in providing training and support to organisations that are trying to uplift the general quality of their cultures and line managers.”
Communiting windfall ending
Allen noted there had been an uplift in interest for health insurance but wondered if this would dip as life returned to normal.
“I’m wondering if there’s a spike because it’s very topical now but maybe it’ll tail off as peoples’ minds move to different things,” he said.
“Or as their commuting money goes back on commuting instead of just sitting in their bank account with the luxury of being able to spend it.”
However, he added that the industry would need to look at different approaches and products to maintain interest or even to grow the market.
“We’ve really seen the need for people to get much more tailored in the offerings and a great example of that is women’s health,” he continued.
“When you look at the stats its quite scary to see how many women still suffer from things like menopause being misunderstood.”
Chronic conditions and cheaper products
This could be expanded to coverage for chronic health conditions and new cheaper products to attract more younger people to consider health insurance.
“If you’re already in the market then we definitely see the scope for chronic conditions provision and the interest in patient and insurer working on things that are about prevention,” Allan said.
“That goes on in all other areas of insurance so there are definitely opportunities for that.
“The demographic which buys health insurance tends to be older and if we want to persuade younger people into the market then price is probably a bit of a problem.
“So stripped down products that mainly address routine areas but don’t give cover for some of those big areas that younger people are maybe not as worried about, that’s probably an opportunity for market growth for the first time in a while if someone can unlock that.”
