Analysis of the Financial Conduct Authority’s latest General Insurance Value Measures data has found that 68.1 per cent of healthcare cash plan premiums were paid out in claims.
The data covered the calendar year for 2025. Despite a small dip from 68.7 per cent in 2024, this pay out rate marks the highest proportion of any general insurance line of business covered by the FCA.
By comparison, claims costs as a proportion of premium were only 17 per cent for wedding and party insurance, the least of any reported business.
The claims acceptance rate for healthcare cash plans also decreased slightly from 92.8 per cent to 91.1 per cent year-on-year.
Kathryn Moore, senior actuarial director at Broadstone, says: “Healthcare cash plans continue to demonstrate strong value for policyholders, with more than two-thirds of premiums paid back out through claims.
“Claims ratios are only one measure of value and should be considered alongside factors such as claims acceptance, coverage, exclusions and customer outcomes. However, the latest figures provide encouraging evidence that these products are delivering meaningful financial support when policyholders need to claim.”
The cash plan market is becoming increasingly competitive, bringing renewed focus on how these plans fit with wider health and protection benefits, particularly given demands for better management information, according to a Corporate Adviser roundtable hosted in October 2025.
