The UK private health insurance market has grown significantly, with a £385m increase in just one year, largely driven by rising demand for private treatment due to the ongoing NHS crisis.

According to LaingBuisson, a health data provider, the total market, which includes medical and dental insurance, grew by 6.1% to £6.7bn in 2022. The number of people covered by medical insurance has also surged to 7.3 million, the highest since 2008, reflecting the strain on NHS services.
The NHS waiting list in England hit nearly 7.8 million last September and remains high, with 7.5 million still waiting in February 2024. Half of these patients had been waiting 18 weeks or longer. This situation is driving more people toward private healthcare. Tim Read, author of the report, notes, “Demand began to increase in 2018, as the NHS waiting list began to rise out of control,” and he adds that with a new Labour government, substantial progress on reducing the backlog may be difficult due to limited fiscal space.
Company-backed health schemes have been a significant factor in the market’s growth, suggesting that employers are becoming more aware of the impact of employee health on productivity, especially with the difficulties in accessing NHS services. As Read points out, “Growth is led by company-backed schemes, which may suggest an increased awareness of the impact of employee ill-health on a business.”
The report also highlights that people are increasingly paying out-of-pocket for medical treatments, despite the high cost of some procedures. Knee operations, for example, can cost between £12,000 and £15,000. Dental insurance has also grown rapidly, with a 9.7% increase in 2022. However, most private dental patients still pay for treatment directly, without insurance coverage.
In areas where NHS dental services are not available, so-called “dental deserts,” many people have resorted to visiting hospitals or GPs for severe dental issues. This has pushed more people toward private dental care. The average health insurance premium rose slightly to £1,225 in 2022, with work policy premiums at £975 and individual premiums at £2,252. Some insurers have warned that premiums could increase by more than 10%, with one predicting hikes of up to 40%, as medical costs and claims continue to rise.
The UK private health insurance market is dominated by providers like Bupa, Axa Health, Aviva, and Vitality Health. In the dental insurance market, major players include Bupa, Simply Health, and Unum.
Reflecting on the shift, Read concludes: “I don’t think that the NHS is going to fall apart overnight or that the private sector is going to run rampant overnight. But I do think people as customers, rather than people as taxpayers, are beginning to reconceptualise the value of paying additionally for healthcare entitlements, which technically they should get on the NHS.”