UK health insurers processed a record £4 billion in private medical insurance claims in 2024, as employer-funded workplace health insurance schemes expanded sharply amid ongoing pressure on NHS services, according to figures released in January 2026 by the Association of British Insurers (ABI). Analysis by The WP Times shows workplace cover was the main driver behind rising claims and payouts, highlighting employers’ growing role in supporting access to healthcare across the UK.
What happened — in one view
| Question | Answer |
|---|---|
| What happened? | UK insurers paid out a record £4bn in private medical insurance claims in 2024 |
| What drove growth? | Heavy use of employer-funded workplace health schemes |
| How big was workplace cover? | £2.6bn in claims from workplace schemes alone |
| How many people were insured? | 6.5 million, up 4% year on year |
| Who used the cover most? | Employees insured via workplace policies |
Source: Association of British Insurers
Claims reach highest level on record
The ABI said the £4bn total marks the highest annual claims figure since it began recording comparable data in 1993. The sum includes payouts under both individual private medical insurance and workplace health insurance schemes. Usage also rose sharply. In 2024, 1.8 million people made claims on their policies — an increase of 10% compared with 2023 — indicating not only broader coverage, but more active use of private healthcare.
Workplace schemes dominate payouts
Workplace health insurance was the standout contributor. Insurers processed £2.6 billion in claims from workplace schemes alone, representing a 16% increase year on year. According to the ABI, employees covered by workplace policies were the main source of rising claims volumes, highlighting the growing role employers play in facilitating access to diagnostics, treatment and specialist care.
Coverage expands to 6.5 million people
The ABI said the total number of people covered by private medical insurance rose by 4% to 6.5 million in 2024. Of those, 4.8 million were insured through employer-sponsored policies, confirming that workplace cover now accounts for the majority of the UK private medical insurance market.
The figures suggest that employer-funded schemes are no longer a niche benefit, but a core component of workforce health strategies.
ABI: insurers support access alongside the NHS
Rebecca Ward, Head of Health and Protection Policy at the ABI, said the figures demonstrate the sector’s growing importance.
“Another record-breaking year for coverage, claims and payouts underscores the vital role of insurers in maintaining a healthy UK population.”
She stressed that private health insurance complements, rather than replaces, public healthcare:
“As a complement to the life-saving work of the NHS, health insurance continues to help individuals and their loved ones access timely medical testing, treatment and care when it matters most.”
On employer-funded schemes, Ward added: “Our figures specifically highlight the value of workplace health insurance schemes in supporting employees to stay well and in work.”
Key metrics — 2024 snapshot
| Indicator | 2024 | Change |
|---|---|---|
| Total claims paid | £4.0bn | Record high |
| Workplace scheme claims | £2.6bn | +16% |
| People insured | 6.5m | +4% |
| People insured via work | 4.8m | Majority |
| People making claims | 1.8m | +10% |
Source: Association of British Insurers
Although the data covers 2024, its publication in 2026 highlights a longer-term shift in UK healthcare funding. Employers are increasingly using private medical insurance to offset NHS delays, reduce sickness absence and retain staff, embedding workplace health cover more deeply into employment packages.
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