The UK’s private medical insurance (PMI) market is experiencing a surge in claims, particularly for diagnostic tests and scans, as people seek to avoid lengthy NHS waiting lists. According to data from Howden, diagnostic tests and scans are the most common reason for claims across all age groups, except for those over 65. This trend is driven by the ongoing NHS waiting list crisis, with 7.31 million people waiting for treatment, including 1.7 million waiting for diagnostic tests.
The data, which analyzed claims from 2,000 people, found that mental health services are a key concern for younger people, with those aged 18-24 and 45-54 making the most claims for mental health support. Jon Carroll, executive director at Howden, noted that private medical insurance is not just about covering major illnesses, but also about addressing everyday health concerns and promoting overall wellbeing.
The data also revealed that male policyholders are more likely to make a claim (47%) than women (38%), and that younger people are almost three and a half times more likely to claim on their policy than older people. In fact, 57% of policyholders under 24 made at least one claim in the past five years, compared to just 17% of those aged 65 and over.
This trend is reflected in the growing number of people taking out private health insurance, with employer-provided coverage reaching a 30-year high of 4.8 million people, according to data from the Association of British Insurers (ABI). Health Secretary Wes Streeting has acknowledged the pressure on the NHS and has advocated for PMI as a way to help alleviate the burden. However, he has criticized a proposal by Reform UK to offer tax relief on private healthcare policies, which he claims would cost the country £1.7 billion.
Overall, the data suggests that private medical insurance is becoming an increasingly important option for people seeking to access timely and effective healthcare, particularly for diagnostic tests and mental health services. As the NHS continues to grapple with waiting list pressures, the demand for private healthcare is likely to continue to grow, with significant implications for the healthcare sector and policymakers.