By Clare Yates
4 min read
Private health insurance isn’t just growing – it’s booming. New industry data from the ABI shows the market accelerating at its fastest pace in years, with total health insurance coverage rising 4% to 6.5 million people in 2024.
Most of that growth is coming from the workplace, where employer‑funded company health insurance schemes covered 4.8 million employees. It’s the second year in a row this figure has hit a record high in more than three decades of reporting from the ABI.
The ABI also reports that insurers processed a record £4 billion in claims in 2024, up 13% on the previous year – another sign of just how much the private healthcare industry is growing. It’s one of the clearest indicators yet that private healthcare is becoming a mainstream part of UK working life. That’s good news for the millions of employees who benefit.
More employers planning to introduce PMI
Broadstone’s latest Employee Benefits Landscape Report reinforces this shift, highlighting how quickly demand for employer‑funded health cover is accelerating. One of the clearest trends is the shift in employer attitudes towards health insurance. Broadstone’s data shows:
Employers with definite plans to introduce private health insurance have increased from 9% in 2023 to 11% in 2025.
Employers ‘considering’ PMI have risen from 15% to 20%.
The proportion with no plans to offer health insurance has dropped from 74% to 68%.
In practical terms, almost a third of employers who don’t currently offer health insurance are now actively thinking about it. It signals a future where private health cover could become a much more common workplace benefit.
Private healthcare, once seen as a premium perk, is becoming a mainstream part of the UK employment landscape. And for workers, that translates into greater choice, better access and a level of protection that can feel increasingly difficult to find elsewhere.
Strain on the NHS intensifies
The continued pressure on NHS capacity has been signalled as a driver behind this shift. Long waiting lists and access challenges mean employers increasingly see health insurance as essential for keeping staff healthy, productive and supported. Faster diagnosis, treatment and access to specialist pathways are becoming critical tools for managing absence and maintaining workforce resilience.
Brett Hill, head of health and protection at Broadstone, said: “The NHS remains under significant pressure, which means that businesses increasingly view access to timely diagnosis and treatment as a critical factor in supporting employee wellbeing, productivity and retention.”
This message is reinforced by new research from The Exeter, which found that 44% of UK adults have taken at least four weeks off work at some point in their career due to illness, injury or mental health challenges. For many, these extended absences had knock‑on effects on income, wellbeing and job security.
The findings show just how disruptive ill health can be – and why quicker access to healthcare is becoming such a priority for both employers and employees.
What this means for employees
For employees, the rise in employer‑funded health cover is overwhelmingly positive. As more organisations introduce health insurance, workers are gaining access to faster diagnosis, quicker treatment and a wider range of support services. At a time when NHS waiting lists remain stubbornly high, this shift can make a meaningful difference to how quickly people get the care they need.
There’s also a financial advantage that many employees don’t always realise. Workplace health insurance can be more cost‑effective and more comprehensive than buying an individual or family health insurance policy, because:
Employers get better deals from their buying power.
Companies often subsidise part of the cost.
Workplace schemes may cover certain pre‑existing conditions, which isn’t always the case with health insurance.
Some schemes allow employees to add partners or children at preferential rates,
For many people, it’s the most affordable route into private healthcare – and one they might not have considered otherwise. Individuals and families who would struggle to fund private cover independently can access a significant upgrade in day‑to‑day healthcare.
With demand rising and employers continuing to invest, workplace health insurance looks set to play an even bigger role in supporting the UK workforce in the years ahead.
Sources:
Total health insurance coverage rose to 6.5 million people in 2024. The Association of British Insurers: Insurers process record £4bn across individual and workplace health schemes. Date accessed 16 February 2026.
Employers considering PMI have risen from 15% to 20%. Insurance Business Mag: Record increases in employer-funded PMI and health cash plans. Date accessed 16 February 2026.
