UK private medical insurance costs are expected to increase by 12.6% in 2024, higher than the global average and three percentage points above the European average, according to research by global advisory, broking and solutions firm Willis Towers Watson (WTW).
According to the WTW Global medical trends survey, UK private medical inflation has been consistently higher than the European average for the last five years, driven by increases in demand for private healthcare services, pressure on public healthcare systems and higher levels of claims.
For the third consecutive year, global medical costs are projected to increase by double digits, at 10.4% in 2025. Respondents cited increased use of health services, rising pharmacy costs and new medical technologies as the primary drivers, as well as a surge in private medical healthcare utilisation and use of mental health services over the last few years.
In North America, costs are projected to rise from 8.1% in 2024 to 8.7% in 2025. Costs are projected to accelerate in Asia, the Middle East and Africa, while Europe and Latin America will see slower increases.
Over the next three years, 64% anticipate higher, or significantly higher, medical trends globally, while 67% anticipate higher, or significantly higher, global demand for healthcare services. The demand for medical care is not expected to decline in the near future.
Linda Pham, global health and risk leader, integrated and global solutions at WTW, said: “With medical cost increases remaining at double digit levels, employers will need to manage budget expectations and balance cost increases with data-driven business and health outcomes. The seemingly never-ending rise in costs poses a constant challenge for employers to take action in order to mitigate these unsustainable increases.”
Kevin Newman, head of health and benefits Europe at WTW, added: “While recognising that some factors influencing costs may be out of their control, employers can hone-in on key initiatives to help control costs while boosting the value of their health benefits. These include, but are not limited to, promoting preventive care, evaluating vendor solutions and continuing to expand wellbeing offerings.”
