Having gone through a major three-year growth spurt the individual private medical insurance (PMI) market eased its expansion in 2024.
The growth of 6.5% revealed in Health & Protection’s Individual PMI 2025 report was still healthy compared to previous conditions, but it appears clear the post-Covid boom for the market is over.
This left the panel at our House of Lord’s roundtable in association with Axa Health, to break down the key reasons behind the slowing down and some of the more concerning factors in the market.
Soaring premiums seem to be the number one factor chastening consumer appetite and triggering lapses, especially for older members, but related issues such as value for money of cover and the wider economy are also having an impact.
The panel urged insurers to take a firmer line with hospitals and medical facilities on fees, citing personal experiences of where this has worked for them.
And there were also severe concerns about the sale of moratorium underwritten plans – particularly from direct sales forces, with fears poor explanation of terms could lead to mis-selling.
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