A new analysis has revealed a significant rise in the use of insurer-provided health services in the UK, intensifying calls from the insurance sector for the government to freeze - and ultimately reduce - Insurance Premium Tax (IPT) to support broader access to workplace health benefits.
According to the Association of British Insurers (ABI), approximately 2.2 million people accessed health services through insurers in 2023, marking a 23% increase from the previous year’s figure of 1.8 million. The data underscores the expanding role of health and protection insurers in supporting both the UK population and workforce.
The report found that customers made 10.3 million interactions with insurer-provided health services last year, a 22% jump from 2022. Over half of these interactions (51%) were related to prevention, diagnosis, or early care - highlighting the sector’s contribution to proactive health management.
Employer-sponsored schemes were a key driver of this growth. Nearly four out of five users (77%) accessed health services through workplace benefits, suggesting that employers are playing an increasingly pivotal role in workforce health. The ABI report points to an opportunity for employers to further leverage workplace schemes to improve employee health outcomes.
Breakdown of services used in 2023 includes:
Despite this growth, the UK continues to face challenges with economic inactivity. Around 9.19 million working-age adults are currently economically inactive, with 2.8 million citing long-term sickness as the primary reason. The ABI argues that insurer-provided health services are helping to bridge this gap, but that further progress depends on greater uptake - particularly among small businesses and lower earners.
The ABI is urging employers to better publicise workplace health offerings and ensure employees understand how to access these benefits, describing this as a low-cost way to support staff wellbeing and retention.
With the Autumn Budget approaching, the ABI is renewing its call for the government to recognise the role of health and protection insurers in keeping people healthy and in work. The association is specifically calling for a freeze on IPT, with a view to reducing the tax when fiscal conditions allow. The ABI contends that high IPT rates act as a barrier to broader adoption of workplace health and protection insurance, particularly for SMEs and lower-income workers.
The debate over IPT has gained urgency in light of Sir Charlie Mayfield’s ‘Keep Britain Working’ review, which has focused policymakers’ attention on tackling health-related economic inactivity. Industry stakeholders argue that reducing tax barriers is a practical step the government can take to make workplace health benefits more accessible and to support economic recovery.
As the government prepares its fiscal plans, the insurance sector will be watching closely to see whether calls for IPT relief are heeded - and whether policy changes will help expand access to health and protection insurance for the UK workforce.
