What do you think about the Competition Commission's recently published investigation into the private healthcare market and what will it mean for insurers?
Karl Elliott, Engage Mutual
The review highlights the need to put the customer back at the heart of the process, and ensure their interests are better safeguarded, something which isn't the case at the moment.
Consumers are becoming even more savvy in making sure they receive best possible value for money, the report's findings will put more pressure on insurers to guarantee this.
In terms of outcomes, I think we'll see a closer working relationship between insurers and healthcare providers as each strives to ensure that the needs of the customer are better met.
As an organisation we are in favour of the findings of the review, in so much as it identifies instances where consumers are not getting a fair deal. Whether at the point of claim, or of purchase, those seeking health related products or services should be assured they are getting the best value for money.
As a mutual what matters most is our customers' health and wellbeing, so we would be critical of any activity which could unfairly lead them to either delaying or cancelling their treatment, or have to make claims for inflated treatment costs that push up premiums and affordability for all.
As an organisation we are committed to finding new ways of providing financial alternatives and support to help individuals manage the health issues they face.
Andy Couchman, Protection Review
I have to start with a caveat - the Competition Commission has not yet published its final recommendations and much could change before next April. In particular, hospital operators will defend their practices, so we may see some watering down of the Commission's initial remedies.
That said, in the short run, greater competition should benefit both private patients and PMI - perhaps by up to 10%. Even so, relatively little will happen in the next few months.
Longer term, the industry needs to better manage rising claims costs and the key issue is whether a slowdown in the rate of cost rises can be achieved, not just improving competition to benefit the end user. Hospital costs are just one element of claims costs - improving the IT and directing care hold open prospects of cost saving too.
Of course, the Commission could have done more but, equally, it could have chosen to attack insurers too (it still might!). I'm not convinced competition will be improved to the extent it could be but something is better than nothing.
Fundamentally, improving competition in a market with few hospitals in any area is hard. Even in London, the scope for competition-driven savings is limited.
We must hope the Commission's final recommendations achieve the results hoped for, but PMI is now a fast moving market so we can't afford to sit back and wait for things to happen. Ultimately, what happens with the NHS is likely to be the greatest influence on where the PMI sector goes - and that is something completely out of the industry's control.
