18 Apr 2024

LaingBuisson: Health Cover UK Market Report

The UK’s health cover market is growing at its fastest rate for six years

The 19th edition of LaingBuisson’s report shows that between 2008 and 2019, the market grew by an annual average of 1.7%. This figure surged to 6.1% between 2020 and 2022. Now, 7.3 million people have private medical cover – the highest number since 2008.

The Covid-19 pandemic may have been a catalyst for the rapid increase in take up, but the data suggests that challenges in accessing NHS waiting lists has driven increased demand for medical cover since 2018. LaingBuisson’s analysis of NHS waiting lists shows a relationship between median waiting time and the volume of medical cover subscribers.

Increased claims volumes in 2022 are yet to feed through to premium increases, but they are soon expected to rise above historic increases.

Key findings

The latest market valuation is £6.7bn as of the year-end 2022, up £385m on the year before
Private medical cover accounts for 80% of total market value (£5.3bn)
Health cash plans are valued at £461m and dental insurance at £180m.