A record total of 6.2 million people were covered by private medical insurance (PMI) through individual or retail policies last year, a rise of 7%, while claims soared 21%.
According to the Association of British Insurers (ABI) data, around 1.5 million people were covered by an individual PMI policy in 2023 with 4.7 million people under employer schemes – the highest number in more than 30 years of data collection.
The ABI reported a 7% increase in the overall uptake of both individual and workplace policies with an additional 411,000 people covered in 2023 compared to 2022.
Upon publication in August, Health & Protection’s third Individual PMI report found providers saw an 11% rise in the retail PMI market with lives covered estimated to exceed 1.5 million by the end of 2023.
Claims hit another record
However the ABI data also showed an overall 21% increase in the number of claims made to 1.7 million, making a fresh record total of £3.57bn or £9.8m per day, up by 19% compared to 2022 figures.
Workplace claims were the main driver, up by 26% to 1.3 million claims, with pay outs for these policies also up by 26% to £2.27bn.
Claims from individuals totalled around 400,000 and were valued at approximately £1.5bn.
Health & Protection understands Aviva, Axa Health, Bupa, The Exeter, Vitality and WPA are ABI members.
Rebecca Ward, assistant director and head of health and protection at the ABI, said: “With record coverage, claims and pay outs in 2023, our new data highlights the importance of private medical insurance for maintaining a healthy population, complementing the care provided by the NHS.
“The government is rightly focussed on tackling economic inactivity due to ill-health as a barrier to growth.
“Health and protection insurance is already stemming the flow of people into economic inactivity, preventing 14 million sickness days a year, equivalent to 12,500 full-time workers.
“We want to work with government to play an even greater role in supporting and delivering a healthier and more productive workforce.”
