The Association of British Insurers (ABI) has reported that the number of people in the UK covered by Private Medical Insurance (PMI) through their employers reached a record 4.7 million in 2023.
This figure marks the highest level of employer-provided PMI coverage in over 30 years of data collection by the ABI. Overall uptake of private medical policies, both individual and workplace, also saw an increase. The ABI data reveals a 7 percent rise in policyholders across the UK, bringing the total number of people covered to 6.2 million in 2023.
Policy Usage and Claims in 2023
In line with rising enrolments, 2023 saw a notable uptick in the number of claims made by policyholders. Data shows a 21 percent increase in claims across both individual and employer-provided policies, totalling 1.7 million claims. Workplace policies were a primary factor in this rise, with claims in this category climbing by 26 percent to reach 1.3 million.
The ABI also reported a significant rise in payouts for private medical insurance claims, with insurers paying a record £3.57 billion, an increase of 21 percent from 2022. This represents an average daily payout of £9.8 million over the course of the year. Payments related to workplace policies specifically rose by 26 percent, amounting to £2.27 billion in total.
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Supporting Workforce Health
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.”
A report by the Royal Society for Public Health (RSPH) released last month revealed that nearly half of the UK workforce lacks access to essential health support in the workplace, with 47 percent of workers – particularly those in lower-paid sectors such as agriculture and hospitality – do not receive health checks, flu vaccinations, or other health benefits at work.
