Consumer attributes and the UK market for private medical insurance

Publication type

Journal Article

Authors

Publication date

June 1, 2006

Abstract:

This paper seeks to investigate the determinants of private medical insurance (PMI) consumption in the UK. Design/methodology/approach ? A unique combination of panel data estimators, reduced from equations and instrumental variables, applied to six waves of the British Household Panel Survey, 1996-2002. Findings ? Results from previous studies are compromised by their failure to use appropriate estimation techniques. Furthermore, a clear distinction between being covered by PMI, having purchased PMI; and having an employer provide PMI is important. Research limitations/implications ? Controlling for endogenous variables, such as income and the use of panel data estimators, should be a necessary research method in this area. Practical implications ? This study provides a robust analysis of the determinants of PMI consumption in the UK, enabling product providers to identify and target potential customers in different segments of the PMI market. Originality/value ? This paper breaks new ground in concluding with confidence that age, experience of the NHS in the past years and the belief that the NHS is poor quality, are positive influences on PMI uptake

Published in

International Journal of Bank Marketing

Volume

Volume: 24 (7):444-460

DOI

http://dx.doi.org/10.1108/02652320610712076

Subjects

Notes

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