Advisory & Financial Services · UK · UK SIC 65.20

Accident & Health Insurance in the UK: Market Size, Businesses & Forecast 2026

The UK accident and health insurance industry provides coverage against personal injury, illness, and medical expenses, with sector output of £30.2 billion in 2021 (source: ONS). The industry is experiencing moderate growth driven by increasing health awareness and aging populations, though recent economic pressures have impacted consumer spending on non-essential policies.

Market size
USD 80.2 bn (2023)
Businesses · 2025
990
Outlook
Growing
Competition
Moderate, rising

Industry snapshot

Demand drivers
Aging population
NHS waiting times
Employer benefits
Health awareness
Chronic conditions
Relative importance, Claight qualitative assessment.
Market structure
fragmented
moderate
concentrated
Competitive intensity
moderate, rising
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Key public data points

Sector output (2021)30,200 million GBP
Source: Office for National Statistics
PMI coverage (2022)5,300,000 people
Source: PA Consulting Group
Market share of top 5 PMI providers (2022)70.0 percent
Source: Financial Conduct Authority
Gross written premiums (2022)11,500 million GBP
Source: Swiss Re Institute
NHS waiting list (2023)7,000,000 people
Source: NHS England
Bupa UK customers (2023)3,200,000 customers
Source: Bupa UK

Historical & forecast

Base year 2025. Each series is official through its own latest government-data year (shown in the legend on each chart), and years beyond that are Claight estimates. As of July 2026 the current year is still in progress (2026 annual data is not yet published), so the forecast runs to 2030.

Number of businesses
Base year 2025
Official data (2010-2025) · ONS UK Business Counts (Nomis)Forecast
Counts 2010 to latest are official ONS local-unit data; later years are a Claight forecast off the recent trend.
Forecast
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2025 base: 9902030 est: 947
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Industry Definition and Scope

What does the Accident & Health Insurance in the UK industry cover?

The accident and health insurance sector in the UK includes both private medical insurance (PMI) and income protection products, covering individuals and businesses against health-related financial risks. The industry encompasses standalone accident insurance, health cash plans, and comprehensive medical coverage options.

  • Accident and health insurance accounted for 14.2% of UK insurance sector premiums in 2021 (source: Association of British Insurers)
  • PMI covers approximately 5.3 million people in the UK (source: PA Consulting Group 2022)

Market Structure and Operators

Who operates in the industry and how is it structured?

The UK accident and health insurance market features a mix of large multinational insurers and specialized domestic providers, with distribution through direct sales, brokers, and workplace schemes. The market is characterized by strong brand loyalty and relatively high customer retention rates.

  • Around 70% of PMI premiums are written by just 5 major providers (source: Financial Conduct Authority 2022)
  • The market generated approximately £11.5 billion in gross written premiums in 2022 (source: Swiss Re Institute)
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Demand Drivers

What drives demand in the industry?

Key demand drivers include rising healthcare costs, increasing health awareness, aging demographics, and the growing prevalence of chronic conditions. Employers offering PMI as a benefit also contribute to demand, particularly in professional services and technology sectors.

  • Average NHS waiting times reached 7.0 million in February 2023 (source: NHS England)
  • The UK population aged 65+ is projected to increase by 25% by 2043 (source: Office for National Statistics 2022-based projections)

Competitive Landscape and Notable Public Companies

Who are the notable companies in the industry?

The UK accident and health insurance market features several major international and domestic insurers competing across different segments. Competition is strongest in the PMI segment where employers often provide coverage as part of employee benefits packages.

  • Bupa UK (part of the international Bupa group) leads the PMI market with approximately 3.2 million customers
  • Aviva PLC offers comprehensive health insurance products through its UK general insurance division
  • AXA UK (part of AXA Group) provides health and protection insurance solutions
  • Prudential UK offers health and protection products through its M&G Prudential division

Recent Trends and Outlook

What are the recent trends and outlook?

Recent trends include accelerated digital transformation, increased focus on mental health coverage, and heightened scrutiny of value-for-money in PMI products. The industry faces challenges from rising healthcare costs and regulatory pressure on pricing practices.

  • Digital health app usage among PMI customers increased by 40% between 2020-2022 (source: PA Consulting Group 2022)
  • The Financial Conduct Authority implemented new pricing practices rules in 2022 affecting health insurers
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Regulation and Compliance

How is the industry regulated?

The accident and health insurance sector in the UK is regulated by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA), with additional oversight from the Health and Care Act 2022. Insurers must comply with strict solvency requirements and consumer protection rules.

  • The Insurance Act 2015 governs contract terms in accident and health policies
  • The FCA Handbook contains specific rules on health insurance pricing and transparency (source: FCA Handbook)

Sources

Government, statistical and trade sources used for this Claight analysis.

  • Office for National Statistics UK Insurance Industry 2021 ·
  • Association of British Insurers UK Insurance Key Facts 2023 ·
  • Financial Conduct Authority Insurance Conduct of Business Sourcebook 2022 ·
  • NHS England Waiting Times Statistics February 2023 ·
  • PA Consulting Group UK Private Medical Insurance Market Report 2022 ·
  • Swiss Re Sigma Global Insurance Market Report 2022

Claight analysis of public industry data.