The latest figures from the ABI show insurers processed a record £4 billion in individual and workplace private medical insurance (PMI) claims in 2024, up 13% on the previous year.
That equates to around £11 million paid out every day. At the same time, the total number of people covered by health insurance rose 4% to reach 6.5 million.
Of those, 4.8 million were covered under workplace policies, marking a second consecutive record in more than 30 years of data collection. The number of people claiming also increased, with 1.8 million individuals making a claim in 2024, up 10% year-on-year.
Workplace schemes were again the main driver of that growth, with £2.6 billion paid out across employer-backed policies alone.
Now, admittedly this is 2024 data – the ABI have only just released this – but we would not anticipate any change over the last year or so. It’s clear PMI is not a stagnant market. Far from it. Instead, it is expanding in both cover and usage, with more people taking out policies, and more relying on them.
NHS WAITING TIMES CONTINUE TO SHAPE BEHAVIOUR
Behind this trend sits a clear backdrop. Although NHS waiting lists have eased slightly from their peak, they remain far above pre-pandemic levels. In late 2025, the overall waiting list stood at around 7.3 to 7.4 million cases, compared with 4.57 million in February 2020.
Performance against the 18-week standard also remains well below target. In October 2025, only 62% of patients had been waiting less than 18 weeks, against a standard of 92%. Around 171,000 people were waiting more than a year for treatment.
Median waiting times have also risen sharply compared with 2019 levels.
For many households, these figures are not abstract. They reflect lived experience, either personally or through family members. Delays in diagnosis and treatment create stress, uncertainty and, in some cases, financial strain where time off work is involved.
It is not surprising, therefore, that PMI is increasingly seen as a practical option rather than a luxury purchase.
THE ADVISER’S ROLE IN IDENTIFYING NEED
Mortgage advisers often sit at the centre of a client’s financial life, particularly at key moments such as a house purchase or remortgage. These conversations naturally extend beyond rates and loan sizes. They cover employment, income security, family circumstances and future plans.
In doing so, advisers frequently gain insight into health concerns, employer benefits and worries about access to care. Under Consumer Duty, there is a clear expectation that firms consider a client’s wider needs and act to deliver good outcomes.
PMI sits squarely within that wider conversation. For some clients, especially those facing long NHS waits or those without employer cover, there may be a clear gap. For others, there may be an opportunity to review existing workplace benefits or consider cover for dependants.
Not every mortgage adviser will wish to advise directly on PMI, and that is entirely reasonable. However, there is a difference between not advising and not raising the question at all.
Where advisers identify a potential need, they can either expand their permissions and knowledge in this area or build referral relationships with specialists who can provide appropriate advice.
WORKPLACE COVER AND THE SME OPPORTUNITY
The ABI data also highlights the strength of workplace schemes. With 4.8 million people now covered through employer policies, there is clear appetite among businesses to offer health benefits as part of a wider package.
This presents another route for advisers, particularly those who work closely with self-employed clients and small business owners. Many of these clients already rely on their mortgage adviser for guidance around protection and general financial planning.
Discussing PMI in the context of attracting and retaining staff, reducing absence and supporting wellbeing can be a natural extension of that relationship. For advisers who build strong ties with local firms, this can open up both individual and corporate opportunities.
A GROWING NEED THAT ALIGNS WITH GOOD ADVICE
The combination of sustained NHS pressure, rising claims activity and increasing policy numbers points to a sector with momentum. For consumers, the value lies in faster access to diagnosis and treatment for acute conditions. For employers, it can mean a healthier workforce and reduced downtime.
For advisers, the question is whether they are fully addressing this area when reviewing client needs. Mortgage advice often acts as the first point of contact in financial services. That position brings both opportunity and responsibility.
PMI will not be right for every client. Cost, underwriting and personal circumstances all matter. However, ignoring the subject entirely risks missing a growing area of demand at a time when clients are increasingly aware of health system pressures.
As the ABI figures show, more people are taking cover and more are claiming on it. The role for advisers is not simply to arrange mortgages, but to ensure clients are supported across the wider risks that can affect their home, income and wellbeing.
In the current climate, PMI deserves a place in that discussion.
