Why UK private medical insurance premiums rose in 2025, using ABI claims figures, LaingBuisson market data, insurers' own explanations and Which? cost data.
Why UK PMI premiums rose in 2025 — and what to do about it
Record claims, more people using their cover and age-based pricing: what the published data says about 2025 premium rises.
The short answer
- Insurers paid a record £4bn in health claims in 2024, 13% more than in 2023 (ABI)
- 1.8 million people claimed in 2024, 10% more than the year before (ABI)
- Insurers say renewals reflect claims costs, medical inflation, age and where you live
- We found no published market-wide average renewal increase for 2025, so we don't quote one
The short version
Premiums rose in 2025 because insurers were paying out more, to more people. The ABI reported that insurers paid a record £4bn in individual and workplace health claims in 2024, a 13% rise on 2023, and that 1.8 million people claimed, 10% more than the year before. Insurers' own explanations of renewal pricing point to the same things: the cost and number of claims, medical inflation, and your age.
There is no published, dated market-wide figure for the average 2025 renewal increase from the ABI, LaingBuisson or the insurers, so we don't quote one. Your own increase depends on your insurer, your policy, your age and whether you claimed.
More people buying cover
LaingBuisson's Health Cover UK Market Report (21st edition) valued the UK health cover market at £8.64bn in early 2025, up 13.83% in a year. Private medical cover made up £7.02bn of that, with 8.43 million people covered, about 12.2% of the population.
- UK health cover market, early 2025: £8.64bn (LaingBuisson Health Cover UK, 21st edition)
Record claims and more people claiming
The ABI's figures show where the money went. Total claims paid reached £4bn in 2024, up 13%. The number of people claiming rose 10% to 1.8 million. Workplace schemes drove much of the increase, with claims on employer-provided cover up 16% to £2.6bn.
When more people claim, and each claim costs more, insurers price that into renewals. That is why premiums can rise even for people who didn't claim themselves.
- Health insurance claims paid in 2024: £4bn (ABI, 21 January 2026)
NHS waiting lists and private claims
NHS England's referral-to-treatment statistics for August 2026 show 65.2% of waiting patients in England had waited under 18 weeks, against a 92% standard. Long NHS waits are one reason people buy cover and use it, which feeds into the claims figures above. We haven't found a published figure that measures how much of the claims rise is directly due to NHS waits, so we don't put a number on it.
What insurers say drives renewal prices
Aviva explains that health insurance premiums go up because of general inflation, the number and cost of claims across its members, your age, and medical inflation: the cost of new treatments, drugs and technology. It also says your premium can rise even if you haven't claimed.
AXA Health says price depends on your age, where you live, the hospitals you can use, your excess and the level of cover. Postcode and hospital list matter because treatment costs more in some areas, particularly central London.
How price rises with age
Age is built into every renewal. Which? and LifeSearch published sample quotes in June 2026 for a single non-smoker in an OX (Oxford) postcode, with a standard excess (typically £250) and a guided hospital list. Average monthly prices roughly double between 40 and 60, and double again by 80.
Average monthly sample quotes, June 2026. Source: Which?/LifeSearch, published 21 July 2026. Single non-smoker, OX postcode, standard excess, guided hospital list.
These are sample prices, not a quote. Your price depends on your postcode, health history, hospital list and excess.
| Age | Core cover | Comprehensive cover |
|---|---|---|
| 30 | £32.81 | £55.92 |
| 40 | £40.55 | £71.88 |
| 50 | £56.26 | £95.71 |
| 60 | £80.96 | £138.52 |
| 70 | £126.88 | £214.09 |
| 80 | £177.66 | £280.11 |
What you can do about a rise
How much each change saves depends on your age, postcode and insurer, so compare quotes side by side before you renew. See our cost guide and CPME switching guide.
- Raise your excess: you pay more towards a claim and the premium falls
- Choose a guided or shorter hospital list, especially if you don't need central London hospitals
- Add a six-week NHS option where your insurer offers one: the policy pays only if the NHS can't treat you within six weeks
- Switch insurer on continued personal medical exclusions (CPME) terms so existing exclusions carry over rather than restarting
- Ask a broker to compare your renewal with other insurers before you accept it
Broker notes
A situation we often see: someone in their early sixties gets a renewal well above last year's price and assumes they're stuck. Because exclusions can carry over on CPME terms, it's often worth asking what other insurers would charge before accepting the renewal.
For example, a couple in their fifties on a full hospital list who never use central London hospitals may be paying for access they don't need. Checking which hospitals are near them, and which list includes them, is usually the first thing we look at.
Common questions
Why did my health insurance premium go up in 2025?
Mainly because claims costs rose across the market. The ABI says insurers paid a record £4bn in claims in 2024, up 13%, with 1.8 million people claiming. Insurers also price in medical inflation and your age, so your premium can rise even if you didn't claim.
Was there an average renewal increase for 2025?
We couldn't find a published, dated market-wide average from the ABI, LaingBuisson or the insurers, so we don't quote one. Increases vary by insurer, policy, age and claims history. Ask your broker to compare your renewal with other insurers.
Does making a claim increase my renewal price?
It can. Many policies have a no-claims discount that reduces after a claim, and Aviva says claims across its members affect everyone's price. Check your policy's no-claims discount table to see what a claim would do to your renewal.
How much more will I pay as I get older?
Which?/LifeSearch June 2026 sample quotes for a single non-smoker in an OX postcode show average comprehensive cover rising from £71.88 a month at 40 to £138.52 at 60 and £280.11 at 80. Your own price will differ.
Can I switch insurer to lower my premium?
Often, yes. On continued personal medical exclusions (CPME) terms your existing exclusions carry over to the new insurer rather than restarting, so you don't lose cover for conditions that are currently covered. A broker can compare the market for you.
Is medical inflation the same as normal inflation?
No. Aviva describes medical inflation as the rising cost of treatments, drugs and medical technology, which is separate from general inflation. Both affect premiums.
Sources
- ABI — Insurers process record £4bn across individual and workplace health schemes (21 Jan 2026) (checked 15 Oct 2026)
- LaingBuisson — Health Cover UK Market Report, 21st edition (checked 15 Oct 2026)
- Which? — Private health insurance costs by age (21 Jul 2026) (checked 15 Oct 2026)
- Aviva — Why do my health insurance premiums go up? (checked 15 Oct 2026)
- AXA Health — How much is private health insurance? (checked 15 Oct 2026)
- NHS England — Referral to treatment waiting times statistics (Aug 2026) (checked 15 Oct 2026)
- Key facts: UK health insurance statistics
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