UK Health Insurance Market Size, Share & Trends Analysis Report By Type (Public, Private), By Demographics (Minor, Adult, Senior), And Segment Forecasts, 2023 - 2030

UK Health Insurance Market Size, Share & Trends Analysis Report By Type (Public, Private), By Demographics (Minor, Adult, Senior), And Segment Forecasts, 2023 - 2030

UK Health Insurance Market Growth & Trends

The UK health insurance market size is anticipated to reach USD 437.8 billion by 2030 and is anticipated to expand at a CAGR of 6.5% from 2023 to 2030, according to a new report by Grand View Research, Inc. Due to the increasing prevalence and public awareness of numerous chronic conditions, health insurance has elevated to the top of people’s priority list in the UK. Another key aspect fueling market expansion is the rising cost of healthcare.

In the United Kingdom, healthcare is publicly funded and mainly financed by taxes. However, the country has a separate private healthcare system wherein medical care is obtained through private health insurance. Normally, this is paid as part of a healthcare plan that is supported by the employer or by the patient directly.

There is a huge backlog of patients waiting for treatments and procedures as a result of the COVID-19 pandemic's significant burden on the NHS. Long waiting times combined with a severe shortage of doctors, nurses, and other critical healthcare personnel have put the national health service at a critical point. Thus, driving many individuals to purchase private health insurance. For instance, in March 2023, UK insurance provider Aviva Plc stated that the National Health Service has been under pressure since the pandemic, and this has raised the demand for private health insurance. Sales of health insurance increased by 14%, and it is anticipated that this trend will continue as more people look for alternatives to the NHS.

Several government initiatives are further expected to boost market growth over the forecast period. For instance, to help more businesses, and maintain workers employed, the Association of British Insurers (ABI) proposed reforms to the pension tax relief system and the health insurance tax in the Spring Budget 2023.

UK Health Insurance Market Report Highlights

• Based on type, the market is segmented into public and private health insurance providers.
• The public segment dominated the market in 2022, as all permanent residents of the UK are provided with healthcare through the National Health Service (NHS). In 2021 about 83% of total healthcare expenditure was covered by the government in the UK.
• The private sector is predicted to undergo maximum growth due to NHS's poor access and quality of care. Limited coverage provided by government plans is also one of the major factors contributing to market growth.
• The private segment is further sub-segmented into company-paid PMI (private medical insurance), company-paid self-insured, and individual. The company paid PMI held the largest market share in 2022 and is further expected to continue its dominance over the forecast period.
• Based on demographics, the market is segmented into minors, adults, and seniors.
• The adult segment held the largest market share in 2022, as the majority of adults are covered by health insurance, most commonly through private plans offered by their employers.
• The senior segment is expected to grow at the fastest rate over the forecast period, owing to the growing geriatric population in the country.

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