One in three employers still without PMI despite rising demand

Almost one in three UK employers still don’t offer private medical insurance (PMI) to staff despite growing concern over NHS pressures and record levels of private healthcare claims.

Research from Broadstone’s latest Employee Benefits Landscape Report shows that while interest in employer-funded healthcare is rising, nearly seven out of 10 (68%) organisations that currently do not offer PMI have no plans to introduce it in the next three years.

However the proportion of employers without PMI but with firm plans to introduce it has risen from 9% in 2023 to 11% in 2025, while a further 20% say they are actively considering offering cover. That compares with 15% two years ago, suggesting momentum is building, albeit from a low base.

SURGING DEMAND

The findings come as industry data points to surging demand for private healthcare. According to the Association of British Insurers, insurers processed a record £4bn in individual and workplace PMI claims in 2024, up 13% on the previous year.

The number of people covered by health insurance rose 4% to 6.5 million, with workplace schemes accounting for 4.8 million policies.

Beyond PMI, employers are also expanding other healthcare benefits. The share of businesses offering clinic-based health screenings has increased from 20% to 25% since 2023, while those providing onsite day screenings rose from 7% to 10%.

Health cash plans have also gained ground, with 26% of employers now offering them and a further quarter considering introduction over the next three years.

PREVENTATIVE APPROACH

Brett Hill, head of health and protection at Broadstone, said employers were increasingly viewing access to healthcare as a workforce issue rather than a discretionary perk.

He said: “The NHS remains under significant pressure, which means businesses increasingly see timely diagnosis and treatment as critical to supporting wellbeing, productivity and retention.”

He added: “What’s particularly striking is the growing pipeline of employers actively planning to introduce or expand healthcare benefits over the next few years.

“Organisations are also taking a more preventative approach, with greater uptake of screenings and health cash plans, reflecting a broader shift towards early intervention and long-term workforce resilience.”