The Association of British Insurers (ABI) has announced that health insurers processed a record-breaking £4 billion in private medical insurance claims during 2024. This substantial figure encompasses both individual and workplace policies, underscoring a significant uptick in the utilisation of private healthcare services across the United Kingdom.
Surge in Workplace Scheme Claims
Central to this record total is the performance of workplace health insurance schemes. Insurers processed a remarkable £2.6 billion in claims specifically for these employer-provided policies in 2024 alone. This represents a sharp 16% increase compared to the previous year, 2023, highlighting a growing trend of employers investing in the health and wellbeing of their workforce.
Expanding Coverage and Claimant Numbers
The ABI's data further reveals a broadening base of coverage. The total number of people covered by health insurance in the UK rose by 4% from 2023, reaching 6.5 million individuals in 2024. Of this total, a significant 4.8 million people were covered under workplace policies.
Concurrently, the number of individuals making a claim on their health insurance—whether through individual or workplace policies—also saw a notable rise. In 2024, 1.8 million people claimed, marking a 10% increase from the 2023 figure. The ABI identified claimants on workplace schemes as the primary driver behind this overall growth in claims activity.
Industry Perspective on the Vital Role of Insurance
Rebecca Ward, Head of Health and Protection Policy at the ABI, commented on the findings. "Another record-breaking year for coverage, claims and payouts underscores the vital role of insurers in maintaining a healthy UK population," she stated.
Ward emphasised the complementary nature of private health insurance to the National Health Service. "As a complement to the life-saving work of the NHS, health insurance continues to help individuals and their loved ones access timely medical testing, treatment and care when it matters most," she added.
She specifically highlighted the value of employer-sponsored schemes, noting, "Our figures specifically highlight the value of workplace health insurance schemes in supporting employees to stay well and in work."
Historical Context and Broader Implications
The ABI's records, which extend back to 1993, provide a long-term view of the health insurance sector's evolution. The 2024 data points to a sustained and growing reliance on private medical insurance, particularly through workplace benefits packages. This trend suggests employers are increasingly recognising the importance of a healthy workforce, not just for employee welfare but also for productivity and retention.
The record claims volume of £4 billion processed in 2024 signals a robust and active private healthcare market operating alongside the NHS, providing millions with alternative or supplementary routes to medical care.
