The prolonged wait for NHS treatment is not the only reason behind rising demand for private medical insurance across differing age demographics.
Earlier this week, Aon’s 2025 Employer Sentiment Study which surveyed more than 9,000 employed professionals, aged 18-64, across 23 geographies across the globe found health insurance ranked as the most valued benefit among Gen Z (born between 1997 and 2021), Millennials (born between 1981 and 1996) and Gen X (born between 1965 and 1980).
For Baby Boomers (born between 1946 and 1964), retirement savings ranked as the most popular benefit ahead of paid time off, health insurance and dental insurance.
But when turning the question over to advisers, Health & Protection has found speed of access to treatment, cost of living pressures and access to GPs and mental health support have contributed to the increased demand for PMI in addition to waits for NHS treatment.
No longer a luxury
Kristian Breeze, director of healthcare at Ascend Health, told Health & Protection the study’s findings reflect that clients across these age groups no longer regard PMI.
“It’s a necessity,” Breeze said.
“While NHS waiting lists, which currently exceed 7.6 million, are undoubtedly a key driver, there are broader factors shaping this priority.”
Preventative healthcare and mental wellbeing
Breeze maintained younger generations, particularly Millennials and Gen Z, place greater emphasis on preventative healthcare and mental wellbeing.
“They value health insurance for its access to services such as virtual GP appointments, mental health support, and faster diagnostic testing, services that are often delayed within the public system,” he continued.
“For many, the ability to bypass long waiting times is crucial, not just for physical health but for maintaining productivity and mental resilience in fast-paced working environments.”
Meanwhile, Gen X clients – who are often balancing work with caregiving responsibilities – increasingly seek health cover that benefits their families, he said.
“With rising healthcare costs and the pressures of managing both personal and dependents’ health needs, comprehensive private medical insurance offers much-needed peace of mind,” Breeze said.
Cost of living pressures
But cost-of-living pressures also play a role, he added.
“Health insurance is seen as a valuable benefit that provides financial security against unforeseen medical expenses,” Breeze said.
“Employees are more aware of the potential impact of ill health on income, which is why income protection is likely being seen as great accompaniment to health insurance plans.
“Ultimately, clients across these age groups are seeking certainty, convenience, and control over their healthcare.
“Health insurance delivers this, offering a solution to mounting NHS pressures while aligning with modern expectations for personalised and timely care.”
Faster access to treatment
And according to Joanna Streames, owner at Velvet Mortgage and Insure Services, a clear trend is emerging across these age groups – a desire for faster access to everything.
“That includes healthcare, with more control over their treatment, and peace of mind so that they won’t be left waiting in pain or uncertainty,” Streames said.
“While NHS waiting lists are undoubtedly a huge driver, this shift isn’t just about the delays—it’s about certainty, choice, and quality.
“Gen Z professionals, many of whom are just starting their careers, want mental health support and access to private GP services that fits around their schedules.
“Millennials, often balancing young families and careers, want priority on quick specialist access and avoiding the financial impact of long-term illness.
“Gen X, increasingly dealing with chronic conditions or caring for aging parents, are looking for comprehensive coverage that provides reassurance in mid-life.”
Retention tool
But when it comes to business owners, Streames said offering health insurance is not just about keeping employees happy as it can prove a powerful retention tool.
“With recruitment and training costs higher than eve and businesses worrying about rising costs, losing a team member and having to replace them can be a huge financial strain and disruption to their businesses,” Streames continued.
“Even administrative roles come with recruitment costs, so anything that helps retain staff and keeps them healthy and productive makes business sense and is a worthy investment in my book.
“I believe more companies should and will adopt this strategy to position themselves above competitors as employers of choice and setting a good example of company culture of caring for their employees.
“PMI is no longer an executive-only perk—it’s an essential investment in both your workforce and on your bottom line.”
Focus on accessing care
As for Aon, who conducted the research, principal, Rachel Western, said the key focus for these age groups seems to be accessing care and the breakdown of the NHS is having a big impact on this being done privately.
“Utilisation of benefits is higher than ever as employees are seeking more employer support where the NHS cannot provide,” Western said.
“Digital GP expansion due to pressure in the NHS primary care setting are driving employees down the private route
“In summary, the NHS is having the biggest impact on this but additionally, certain populations are more in tune with their health and are beginning to place more priority on it than before.”
