Private Medical Insurers Report Record 4.7 million Covered by Employer Health Schemes
- Written by: iPMI Global
Figures from the Association of British Insurers (ABI) reveal that a record 4.7 million people were covered by Private Medical Insurance (PMI) through their employer in 2023 – the highest in more than 30 years of data collection.
The ABI has also reported a 7% increase in the overall uptake of both individual and workplace policies. A record total of 6.2 million people now have access to speedy diagnoses and quality treatment for acute health conditions arranged by insurers, as well as support to prevent more serious health issues developing. These figures represent an additional 411,000 people covered in 2023 compared to 2022.
More policyholders made use of their private medical cover in 2023 too. Data shows a 21% increase in the number of claims made across individual policies and workplace schemes to 1.7 million. Workplace claims were the main driver, up 26% to 1.3 million.
Insurers paid out a record total of £3.57 billion for private medical insurance claims, up 21% compared to 2022 figures. That’s £9.8 million per day across the year. Payouts for workplace policies also increased by 26% to £2.27 billion.
Rebecca Ward, Assistant Director and Head of Health and Protection at the ABI, said, “With record coverage, claims and payouts in 2023, our new data highlights the importance of private medical insurance for maintaining a healthy population, complementing the care provided by the NHS.
“The government is rightly focussed on tackling economic inactivity due to ill-health as a barrier to growth. Health and protection insurance is already stemming the flow of people into economic inactivity, preventing 14 million sickness days a year, equivalent to 12,500 full-time workers. We want to work with government to play an even greater role in supporting and delivering a healthier and more productive workforce.”
What Is Private Medical Insurance?
Private Medical Insurance (PMI): A policy designed to cover the cost of private medical treatment for ‘acute conditions’ that start after your policy begins. PMI is available at a range of different levels of cover at various premiums designed to meet the needs of different customers. These policies offer customers choices around the types of treatment that will be covered, what level of cover will apply to those treatments, the location where treatment will be provided and the contribution they might be willing to make to the treatment cost (called ‘the excess’).
