Why Are Private Health Insurance Premiums Rising in 2026?

If your health insurance renewal quote has come in noticeably higher than last year, you're not imagining it, and you're not alone. Premium increases across the UK PMI market have been a consistent theme, and they're driven by a handful of real, identifiable factors rather than insurers simply raising prices arbitrarily.

1. Rising cost of private treatment itself

Private hospitals, like every part of the healthcare sector, have faced sustained cost inflation — staff pay, equipment, drugs and facilities have all become more expensive. Insurers pay these costs directly when settling claims, and that inflation flows through into what they need to charge in premiums to remain sustainable.

2. More people claiming, and claiming more often

As NHS waiting times have driven more people towards private treatment — including some policyholders who previously held insurance mainly as a safety net and rarely used it — claims volumes and claims frequency have both risen. Industry data indicates insurers pay out over £6.5 billion annually in claims across the UK PMI market, with a high proportion of claims — over 90% by some industry estimates — successfully approved, reflecting genuine, high utilisation of policies rather than low-value cover.

3. An ageing, and increasingly health-conscious, policyholder base

As more people take out cover specifically because of NHS pressures, and as the overall insured population ages, the average cost of covering the pool rises. Insurance pricing works by spreading risk and cost across everyone insured — and if the mix shifts towards people more likely to claim, average premiums reflect that.

4. Insurance Premium Tax

A flat 12% is added to most health insurance premiums as Insurance Premium Tax (IPT) — see our full explainer on how IPT works. Any change to this rate flows directly through to what you pay, independent of anything the insurer itself is doing.

Note: None of these factors are unique to any one insurer — they affect pricing across the market, which is why comparing providers, rather than assuming your existing insurer remains competitive at renewal, is worth doing every year.

What you can actually do about it

Compare at renewal, every time. Loyalty rarely earns a discount in insurance — a fresh comparison across the market often finds better value for similar cover.
Review your excess. A higher voluntary excess can meaningfully lower your premium if you're comfortable covering more of a smaller claim yourself.
Check for no-claims discounts. Several insurers reward a clean claims history — make sure you're getting credit for yours.
Reconsider your cover level. Full comprehensive cover with extras like dental and optical costs more than core in-patient and day-patient cover — decide what you actually need.

See if you're overpaying — Compare quotes from leading UK insurers in minutes — free, no obligation.

Frequently asked questions

Will switching insurers guarantee a lower premium?

Not automatically — but because underwriting, excess levels and cover details vary between insurers, comparing the whole market rather than accepting a renewal quote often finds a better-value option for the same or similar cover.

Does a no-claims history reduce my premium?

With many insurers, yes — some offer no-claims discounts or bonuses similar to motor insurance, rewarding policyholders who haven't claimed. Ask any insurer you're comparing whether this applies.

Would raising my excess lower my premium significantly?

Often yes, sometimes substantially, since a higher excess shifts more of the cost of smaller claims onto you and reduces the insurer's average payout per policy. It's a genuine lever worth discussing when comparing quotes, provided you're comfortable covering the higher excess if you do need to claim.