UK Health And Medical Insurance Market Size (2024 - 2029)

The UK health insurance market is anticipated to experience growth in its market size over the forecast period, driven by increasing demand for private healthcare services due to rising NHS waiting times. Health coverage remains a top public priority, influencing government spending and political focus. The market's expansion is further supported by a growing awareness of the importance of insurance, particularly highlighted during the COVID-19 pandemic. The coexistence of public and private healthcare facilities, along with a significant portion of health services financed through general taxation, underscores the diverse structure of the UK's healthcare system.

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Market Size of UK Health And Medical Insurance Industry

UK Health And Medical Insurance Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 8.17 Billion
Market Size (2029) USD 10.21 Billion
CAGR (2024 - 2029) 4.56 %
Market Concentration Medium

Major Players

UK Health Insurance Market Major Players

*Disclaimer: Major Players sorted in no particular order

UK Health Insurance Market Analysis

The UK Health And Medical Insurance Market size in terms of premium value is expected to grow from USD 8.17 billion in 2024 to USD 10.21 billion by 2029, at a CAGR of 4.56% during the forecast period (2024-2029).

The market for private healthcare services is projected to reach USD 13.8 billion by 2025 due to the rise in NHS waiting times and referrals to the private sector. Health coverage has become the highest public priority. By voters, healthcare is most frequently cited as the most important aspect of government spending. The NHS has, thus, become a protected department, with the awareness of all political parties about NHS spending on overall health coverage. According to the data published by the Association of British Insurers (ABI), 1.7 million people in the United Kingdom had private medical insurance (PMI). The NHS across the United Kingdom spent nearly USD 160 billion in 2019. This is equivalent to USD 2799 for every person in the UK and represents 7.1% of the UK GDP.

During the Pre-COVID years from 2016- 2020, household expenditure on all lines of insurance observed a continuous decline, but as the virus spread globally at the end of 2020 and people start realizing the importance of Insurance household expenditure on insurance lines observed an increase from the level of USD 23.7 billion in 2020 to USD 24.51 billion in 2021.

The United Kingdom has a coexistence of public hospitals, private non-profit hospitals, and private for-profit hospitals. While hospitals are mainly publicly owned and independently operated, they are organized as hospital trusts with three hierarchical levels: community hospitals, district hospitals, and regional or inter-regional hospitals, as well as several specialized hospitals offering advanced treatment. In line with the EU average, health services are predominantly financed from general taxation.

The industry currently has a total annual turnover of over USD 85.77 billion. Around USD 36.76 billion of this is made up of exports, indicating that the demand for life science goods and services on a global scale remains strong. Health businesses that choose to invest in life sciences will find that they have access to a range of financial opportunities and the venture capital community.

UK Health Insurance Industry Segmentation

The United Kingdom Health and Medical Insurance Market is segmented by Product Type (Private Medical Insurance, Healthcare Cash Plans, and Dental Insurance Plans) and Procurement Type (Self-pay Health Coverage and Employee Sponsored Health Coverage). A complete background analysis of the UK health insurance industry, including an assessment of the national health accounts, economy, and emerging market trends by segments, significant changes in market dynamics, and market overview, is covered in the report.

The report offers market size and forecasts for the United Kingdom health and medical insurance market in revenue (USD) for all the above segments.

By Product Type
Private Medical Insurance
Individual Policy Coverage
Group Policy Coverage
Healthcare Cash Plans
Individual Policy Coverage
Group Policy Coverage
Dental Insurance Plans
Individual Policy Coverage
Group Policy Coverage
By Procurement type
Self-pay Health Coverage
Employee Sponsored Health Coverage
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UK Health And Medical Insurance Market Size Summary

The UK health insurance market is poised for growth, driven by an increasing demand for private medical insurance and healthcare services. The market is characterized by a blend of public and private healthcare systems, with the National Health Service (NHS) playing a pivotal role in providing free healthcare funded by taxpayers. However, rising NHS waiting times and the need for specialized treatments have led to a growing preference for private healthcare options. This shift is reflected in the increasing number of individuals opting for private medical insurance, despite the market's concentration and the challenges posed by limited competition among private hospitals. The economic landscape, marked by robust growth and low unemployment, further supports the expansion of health insurance offerings, as employers increasingly prioritize employee health and wellness.

The market's expansion is also influenced by strategic developments and partnerships within the insurance sector. Leading companies such as AXA and Bupa are actively enhancing their service offerings through acquisitions and collaborations, aiming to strengthen their market positions and cater to the evolving needs of consumers. The availability of diverse financial products and the integration of public and private healthcare services provide UK residents with a comprehensive range of options for health coverage. Despite economic volatility, the demand for cost-effective insurance solutions and self-pay options continues to rise, indicating a dynamic market landscape with significant growth potential in the coming years.

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UK Health And Medical Insurance Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Porters 5 Force Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Product Type

      1. 2.1.1 Private Medical Insurance

        1. 2.1.1.1 Individual Policy Coverage

        2. 2.1.1.2 Group Policy Coverage

      2. 2.1.2 Healthcare Cash Plans

        1. 2.1.2.1 Individual Policy Coverage

        2. 2.1.2.2 Group Policy Coverage

      3. 2.1.3 Dental Insurance Plans

        1. 2.1.3.1 Individual Policy Coverage

        2. 2.1.3.2 Group Policy Coverage

    2. 2.2 By Procurement type

      1. 2.2.1 Self-pay Health Coverage

      2. 2.2.2 Employee Sponsored Health Coverage

UK Health And Medical Insurance Market Size FAQs

The UK Health And Medical Insurance Market size is expected to reach USD 8.17 billion in 2024 and grow at a CAGR of 4.56% to reach USD 10.21 billion by 2029.

In 2024, the UK Health And Medical Insurance Market size is expected to reach USD 8.17 billion.

UK Health And Medical Insurance Market Report Snapshots

UK Health Insurance Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)