Tesco plans to simplify things in the UK Health Insurance market by offering just TWO levels of cover. Sounds to me like they've been reading up on "behavioural interventions in finance". One of the suggestions from this literature is to offer less consumer choice in retirement planning, in the hope that consumers will better navigate a smaller choice-set, and as a result, actually settle on a pension product.
Tesco to move into health insurance
Wednesday, 10th January 2007 08.07am
Supermarket group Tesco is to begin selling private medical insurance policies in the UK, in its latest attempt to cash in on its dominance in the food retailing market, according to a report in The Independent.
The health insurance market, dominated by established firms such as Bupa and Standard Life - was worth 3.2bn in new premium income last year, according to the healthcare analyst Laing and Buisson.
But it has been criticised as expensive and difficult for consumers to understand, because the terms of policies vary so much, said the report.
The Independent cited a Tesco source, who claimed the supermarket group would simplify matters by offering just two levels of cover.
Its core policy will provide basic medical insurance, while the premium version will offer additional benefits, such as cover for certain out-patient treatments in hospitals, the paper said.
Tesco to move into health insurance
Wednesday, 10th January 2007 08.07am
Supermarket group Tesco is to begin selling private medical insurance policies in the UK, in its latest attempt to cash in on its dominance in the food retailing market, according to a report in The Independent.
The health insurance market, dominated by established firms such as Bupa and Standard Life - was worth 3.2bn in new premium income last year, according to the healthcare analyst Laing and Buisson.
But it has been criticised as expensive and difficult for consumers to understand, because the terms of policies vary so much, said the report.
The Independent cited a Tesco source, who claimed the supermarket group would simplify matters by offering just two levels of cover.
Its core policy will provide basic medical insurance, while the premium version will offer additional benefits, such as cover for certain out-patient treatments in hospitals, the paper said.
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