Consumer attributes and the UK market for private medical insurance
Abstract
Purpose
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
Keywords
Citation
Taylor, A.J. and Ward, D.R. (2006), "Consumer attributes and the UK market for private medical insurance", International Journal of Bank Marketing, Vol. 24 No. 7, pp. 444-460. https://doi.org/10.1108/02652320610712076
Publisher
:Emerald Group Publishing Limited
Copyright © 2006, Emerald Group Publishing Limited