The number of UK adults with Private Medical Insurance has risen by 1m in the past five years to reach 6.9m, according to analysis of the FCA’s Financial Lives survey by consultancy Broadstone.

The ongoing problems in the NHS are believed to have spurred the surge in sales, particularly in the employee benefits sector.

An estimated 13% of UK adults hold health insurance rising to 18% among the employed.

Nearly one in five employees are now covered by private medical insurance.

Three-quarters (76%) of those with PMI hold it as part of an employee benefits package with around a fifth (19%) of workers self-funding. The age groups with the highest level of coverage were those aged 35-44 and 45-54, with 22% of each group holding PMI.

Independent consultancy Broadstone predicts that the number of people taking out Private Medical Insurance (PMI) will continue to rise with more businesses set to take out policies to support the health of their employees.

Brett Hill, Broadstone head of health and protection, said: “The FCA’s research paints a helpful portrait of the PMI sector and shows its importance as an employee benefit with coverage concentrated among working adults.

“Given the crisis in the NHS and the surging levels of economic inactivity due to chronic illness, we expect growth in coverage of PMI to continue, and most likely accelerate, in its current upwards trajectory.”

Broadstone says that the latest update from the Private Health Information Network (PHIN) reveals that private health admissions surged in 2022 and recorded the largest ever quarterly total of admissions in Q1 2023 (227,000), largely driven by increases in insured treatments.