Health insurers processed a record £4bn in individual and workplace private medical insurance claims in 2024, a year on year rise of 13% (2023: £3.57bn).
The number of Britons covered by health insurance also rose to a record high, according to the report from the Association of British Insurers (ABI). A total of 6.5m people were covered by health insurance, a rise of 4% year on year. Of these, 4.8m were covered by workplace policies.
The total number of people who claimed on either individual or workplace health insurance policies reached 1.8 million in 2024, up 10% from 2023.
Claimants on workplace schemes continued to be the primary driver of this increase. Insurers processed a record £2.6bn in claims for workplace schemes alone in 2024, a 16% increase when compared to 2023 figures.
Rebecca Ward, head of health and protection policy at the ABI, said: "Another record-breaking year for coverage, claims and payouts underscores the vital role of insurers in maintaining a healthy UK population.”
Several protection providers had already warned they had paid out record claims in 2024.
Protection, investment and pensions provider LV= paid out around £137m in personal protection claims in 2024, a record for the provider.
Anna Rogers, head of underwriting and claims at LV=, said in 2024 the provider saw a significant rise in the usage of its mental health support, up 61% compared to 2023.
She added that LV= research shows that over half of working people have experience at least one life event in the last three years where protection could have supported.