Private medical insurance trends, identified in an independent survey commissioned by Gauntlet Group in August 2023, appear to have predicted the situation we witnessed in 2024.  On that basis, they perhaps also underline the role private medical insurance has to play in the UK economy going forward.

In November 2024, the Association of British Insurers (ABI) published figures to show that 2023 marked the highest number of people receiving private medical insurance through their employer.  No fewer than 4.7 million people were covered through corporate private medical insurance and an employer scheme, higher than any total in 30 years of tracking.[i] This took the total number of people with private medical insurance to 6.2 million.

Individual private medical insurance policies and corporate private medical cover

The 2023 figure demonstrated a 7% rise in the number of both workplace and individual policies, with an additional 411,000 people covered in 2023, compared to 2022.

People insured through private medical insurance were also using their policies.  Workplace claims rose by 26%, with 1.3 million claims registered on private medical insurance policies held through an employer scheme.  Another 0.4 million claims were made by private individuals.

Private medical insurance and the NHS waiting list

All of this was against a backdrop of rising numbers on the NHS waiting list.  At the end of 2024, there were 7.46 million people waiting for required treatment through the NHS.[ii]

Factors like these had been discussed in our independent research survey, which sought to elicit opinions about private medical insurance.

We discovered that a fifth (20%) of those interviewed in August 2023 said that more individuals would need to take charge of their own healthcare provision, by buying private medical insurance.   Just slightly fewer (19%) said that those who could afford to buy private medical insurance should do so, to take pressure off the NHS.

Private medical insurance as a recruitment and retention benefit

Furthermore, we found that 12% of people – rising to 16% of younger people – would prioritise a potential employer who was offering them the benefit of private medical insurance, over one that was not.  With an ongoing challenge to attract and retain talent, more employers may have been offering private medical insurance to employees, to benefit from this recruitment advantage.

Getting sick workers back to workplaces

At a crucial time for growth within the UK economy, all eyes are on the task of ensuring that those who can work actually do so.  Private medical insurance has a major role to play in overcoming ill-health as a barrier to growth, getting people back to work as fast as possible.  Health and protection insurance is already said to have prevented 14 million sickness days a year, equivalent to 12,500 full-time workers being available for work.

Affordability considerations surrounding private medical insurance

We discovered that one barrier to individuals buying their own private medical insurance was that of cost.  The older the age of an interviewee in our survey, the less they believed they would be able to afford private medical insurance.  40% of over-55s felt this way, whilst it was a quarter of those aged 35-54.

In reality, private medical insurance is a lot more affordable than many people imagine.  When they weigh up the benefit of having fast access to consultants, getting swift diagnoses and being able to choose their clinics and hospitals, many find it well worth purchasing.

How to keep the cost of private medical insurance down

Whilst pre-existing medical conditions will typically not be covered, or will make the premium higher, having cover for those issues that have not yet been diagnosed can be very advantageous.

There are also ways of keeping your premium down, such as volunteering to take a higher excess (the part of the claim that you would pay, if you need to call upon your cover).  You can also remove some aspects of cover that you feel you would not need, such as scans or out-patient care.  Some policies would allow you to reduce elements of cancer care, so you could have NHS treatments as usual, but have your private medical insurance policy give you access to drugs not available on the NHS, if necessary.

Having a healthy lifestyle and committing to a fitness regime can be another way to reduce the costs.  However, choosing the policy wisely, in the first instance, is also important.  Some policies may be full of perks and frills but, if you do not really want those, and would not actually use them, you might be better off with a lower-priced frill-free policy.

How to choose the right private medical insurance policy

Choosing the right private medical insurance policy is the key and, here at Gauntlet Group, we can guide you through that process, whilst offering you an excellent choice of policy.  We can interpret what different policy benefits mean, whether they are of relevance to you and whether there is more leniency on medical conditions with some providers, rather than others.

We can help you determine whether or not to opt out of certain aspects of cover and make sure you understand the implications of doing this.  We can also suggest what a sensible excess might be, weighing up the impact of different excess levels on the premium.

Being presented with just one private medical insurance policy, on a take it or leave it basis, is not the way forward.  You need to consider different options, because some policies will be more suited to you and your circumstances than others will.

And you should also shop around, if you already have a private medical insurance policy.  Do not be complacent and think that, just because it was the best policy for you in 2023, it is still the best one for you, and the best priced, in 2025.

Talk to us today about the different private medical options available to you through Gauntlet, whether you are an individual or someone wanting family cover, or a business that sees the benefit of protecting its employees and their health through this type of healthcare insurance.

Call us on 0113 244 8686 or choose a local broker from our map.

[i] https://www.abi.org.uk/news/news-articles/2024/112/private-medical-insurance-data-2023/

[ii] https://www.which.co.uk/news/article/6-questions-to-ask-before-taking-out-private-medical-insurance-aa8j19A6msNN