The threat from substitutes is limited in nature in the insurance industry. In the United States, a significant portion of the population receives insurance through their job. Most companies have only certain types of HMO or PPO insurance plans, and the choice is made according to the persons finance. The companies in general keep only one type of HMO or PPO.
Substitutes do affect persons who buy their own insurance. In this case, they can choose from a variety of insurance providers. However, the portion of the public who buy their own insurance in the United States is insignificant. As long as Aetna is providing comprehensive services, there is not much of a threat of someone else taking Aetna’s market share by providing the same services.
Substitutes do affect persons who buy their own insurance. In this case, they can choose from a variety of insurance providers. However, the portion of the public who buy their own insurance in the United States is insignificant. As long as Aetna is providing comprehensive services, there is not much of a threat of someone else taking Aetna’s market share by providing the same services.