More than a third of financial advisers are expecting demand for private medical insurance (PMI) to rise in the UK this year, a survey has discovered.
The study of 750 advisers by The Exeter found that although half expect demand to remain flat, 37% are preparing for more people requesting medical insurance, up from 30% a year ago.
Ongoing concerns around access to healthcare and rising waiting lists are driving sentiment for health cover.
If such confidence in the individual PMI market proves to be well placed this year, it could reverse a trend.
The latest available figures show that individual membership stood at more than 1.6 million in 2024, according to Health & Protection’s latest annual Individual PMI Report.
However, the rate of growth continued to fall. In 2024 it halved to 6.5% from 11.5%, 13% and 12.1% in the previous three years.
Double trouble
Confidence in the market is growing despite the industry facing significant headwinds. The survey found that almost four in 10 (38%) advisers see business costs as their biggest challenge this year, rising from 32% of respondents a year ago.
This is mixed with affordability remaining a key barrier for consumers across the protection insurance market.
Rising costs are also a big issue for those arranging income protection and life cover, with 36% of respondents citing the issue as their leading pressure this year.
Close behind costs, regulatory change was named as a challenge by 32% of those questioned across medical, income and life markets.
This is a nod towards the FCA’s Pure Protection Market Study, the results of which are due later this year.
Continue to adapt
Steve Bryan, director of distribution and marketing at The Exeter, said rising business costs for advisers and affordability pressures for consumers should not be underestimated.
“What’s encouraging, though, is they continue to adapt and find ways through those challenges, keeping insurance firmly on the agenda.
“We’re seeing that particularly in health insurance, where confidence in demand remains high as advisers respond to ongoing concerns around access to care and treatment waiting times.
“If advisers are continuing to overcome obstacles, insurers need to ensure that we’re doing our part to back that effort and help them deliver the best outcomes for their clients,” he added.