According to headline figures from a report by private health market analysts LaingBuisson, the private medical insurance (PMI) business is booming. Almost one in eight people, or 4.68 million, have some form of PMI, but does this figure give us an accurate picture of the trends?
The report covers up to the end of 2023 and shows that PMI covered 4.68 million if policyholders’ spouses, partners and children are included. That represents 11.8% of the UK’s 68.3 million population, the highest percentage since 12.3% in 2008.
Looking more closely at the figures, however, the primary driver is employers offering PMI as a benefit. Four out of five policyholders, 3.8 million, are covered by a policy through their employer, leaving only 0.88 million holding PMI as individuals.
PMI offerings by employers depend on economic factors; the high figure for employer-offered PMI was last seen in 2008, but this fell significantly due to the impact of the financial crash as employers cut costly benefit packages.
Unsurprisingly, offering PMI as a benefit is very popular with employees, as they see NHS waiting lists increase. Employers are also keen on the ‘wellness’ packages that are part of PMI, which attempt to reduce work lost due to illness.
Full story in The Lowdown, 8 February 2025
