The wires are abuzz today with news that Simplyhealth has reached agreement to acquire Groupama Healthcare. This news will have come as a surprise to most in the industry, although the recent trend toward consolidation has resulted from market pressures that are all too evident.

In the last year or so, Standard Life Healthcare and PatientChoice have both been acquired (by PruHealth and Westfield Health respectively), AXA PPP has reached agreement to acquire Health-on-line, National Friendly has withdrawn from the PMI market and CIGNA has withdrawn from the SME PMI sector. The landscape of the PMI market has changed dramatically, then, in a little over 12 months.

Although a smaller player, Groupama Healthcare is/was a leading light in the PMI market, with a reputation for delivering excellent service and a key proponent of sharing claims data—a divisive issue. It remains to be seen what of the Groupama ethos will survive the integration, but Simplyhealth has a strong corporate identity and is unlikely to be content with just re-badging products.

Today’s news will have raised a few eyebrows amongst brokers, who will be anxious that there is no further provider consolidation. A diminished number of insurers does not bode well for competition, and whole-of-market brokers need a good spread of providers to prove their worth.

As an individual PMI specialist, today’s news will not directly affect Regency Health, because Groupama competed almost exclusively in the SME sector. I hope that Simplyhealth will be able to accommodate the many good people at Groupama Healthcare.