Renewal premiums typically rise 8–15% a year even without claims. The increase stacks medical inflation (private treatment costs rising faster than CPI), an age-related step, insurer repricing and — for long-standing customers — loyalty pricing. On most individual policies your own claims don't directly raise your premium, because pricing is community-rated.
- ✓Typical renewal rises run 8–15% a year, even claim-free.
- ✓Most individual policies are community-rated: your claim doesn't directly price you.
- ✓CPME switching lets you move insurer without losing cover for conditions that developed.
Anatomy of a renewal increase
A renewal that jumps from £80 to £91 a month feels arbitrary. It usually isn't — it's several separate effects stacked, most of which have nothing to do with you personally. Here's what a typical 12–14% rise is made of.
| Component | Typical contribution | What it is |
|---|---|---|
| Medical inflation | 6–10% | Private treatment costs and claims volumes rising across the whole insured pool, every year |
| Age step | 2–4% | You're a year older, or you've crossed into a new age band |
| Insurer repricing / loyalty drift | 0–5% | Book-wide rate changes, and new-customer discounts you no longer get |
| IPT | 0% (already included) | Insurance Premium Tax at 12% — only adds to the rise if the government changes the rate |
Medical inflation: the engine underneath
Private medical costs rise faster than general inflation, persistently. Consultant fees, hospital charges, new drugs and diagnostic technology all trend upwards, and claims volumes have grown as NHS waits push more people to use their cover — the waiting list stood at 7.3 million in May 2026, with around 1 in 4 people waiting six weeks or more just for diagnostic tests. More claims at higher prices means higher premiums for the whole pool. Insurers pass this through to everyone, claimants and non-claimants alike, which is why a claim-free year still doesn't produce a flat renewal, at any age, with any insurer.
This component is also the one you can't escape by switching: every insurer faces broadly the same treatment costs. What switching can fix is the parts of your increase that are specific to your insurer — their repricing decisions and any loyalty drift on your policy.
What to do about a big increase
- Raise your excess. Moving from £0–£100 to £250–£500 typically claws back 10–20% — often most of the increase — without touching benefits.
- Trim options, not essentials. A six-week NHS wait option (~20% saving), a guided hospital list, or capping outpatient cover all cut cost. Keep cancer cover and core diagnostics intact — see our cheap-done-right guide.
- Switch insurer with CPME. Continued Personal Medical Exclusions (also called continuation or switch terms) means the new insurer accepts you on the same exclusions as your current policy — conditions that developed while insured stay covered, which a brand-new application wouldn't give you.
- Rebroke every year or two. Insurers price to win new business. Comparing at renewal is where most of the market's savings actually sit.
One caution on switching: CPME needs a broadly like-for-like policy, generally continuous cover with no break, and insurers may decline switch terms if you have a claim in progress or a recent serious diagnosis. Get the new policy confirmed on switch terms in writing before cancelling the old one — never the other way round.
Order matters, too. Try the free levers first (negotiation, then a switch quote on CPME terms), then the excess, and only then trim benefits. Cover you remove to save £8 a month is cover you can't add back cleanly later — any condition that's appeared in the meantime would be excluded from the reinstated benefit.
Don't renew on autopilot
How to negotiate your renewal
Insurers have retention teams with genuine discretion, and they'd rather keep you at a discount than lose you. The playbook: get two or three comparison quotes on equivalent cover, phone before the renewal date, quote the competing prices, and ask directly what they can do. Mentioning that you'd switch on CPME terms signals you know it's a real option. Retention offers of 5–15%, a free excess increase, or a benefit tweak that holds your price are all common outcomes — but they're almost never volunteered in the renewal letter itself.
Two things strengthen your hand. First, timing: call two to four weeks before renewal, while there's still time to switch cleanly and both sides know it. Second, precision: comparing like-for-like cover, naming the competing insurer and premium, and knowing whether your medical history makes you switchable. A broker can run this whole process for you at no extra cost — insurers pay the commission either way — which is worth knowing before renewing on autopilot; our broker vs direct guide explains how that works.
Frequently asked questions
What is a typical annual health insurance price increase?
Around 8–15% a year has been typical across the UK market recently, combining medical inflation of roughly 6–10% with an age-related step of 2–4%. Increases well above that range — or above 20% — are worth challenging with comparison quotes, because they often include loyalty pricing rather than pure cost pass-through.
Does making a claim increase my health insurance premium?
On most UK individual policies, not directly — pricing is community-rated, so renewals reflect the whole pool's claims plus your age, not your personal history. The exceptions: insurers with no-claims discount structures, where a claim drops your NCD level and raises what you pay, so check which model your policy uses.
Can I switch health insurance mid-year?
You can cancel most policies at any time, but mid-term switching is rarely worth it: you may owe the remaining premium or lose pro-rata refunds, and switch (CPME) terms are typically arranged at renewal. The clean move is to line up the new policy in the weeks before your renewal date and switch at it.
What is CPME switching in health insurance?
Continued Personal Medical Exclusions — switching to a new insurer that accepts your current underwriting position, keeping your existing exclusions but not adding new ones. Conditions that developed while you've been insured stay covered. It requires broadly like-for-like cover, continuous insurance and no break between policies, and insurers can decline it if you're mid-claim.
Why has my renewal gone up when I haven't claimed?
Because most of the increase was never about you. Medical inflation — rising treatment costs and claims across the whole insured pool — plus your annual age step apply to everyone, claimants or not. If your rise is well above the 8–15% norm, suspect loyalty pricing and get comparison quotes.
What is medical inflation?
The rate at which private healthcare costs rise — consultant fees, hospital charges, drugs, diagnostics and claims volumes — which persistently outpaces general inflation, typically running at 6–10% or more a year. It's the largest single component of most renewal increases and applies across every insurer.
Can I negotiate my health insurance renewal?
Yes, and it works more often than people expect. Get two or three like-for-like comparison quotes, call the retention team before your renewal date, and ask what they can do. Discounts of 5–15%, free excess changes or price holds are common outcomes — but almost never offered unprompted.
If I switch insurers, will my existing conditions still be covered?
On CPME switch terms, conditions that arose while you were insured carry over covered, and only your original exclusions carry across. If you switch with fresh underwriting instead — moratorium or full medical underwriting — everything on your medical record to date becomes a pre-existing condition and is typically excluded.
Do health insurers offer no-claims discounts?
Some do — with NCD scales that can discount premiums substantially at the top level, rising a level for each claim-free year and falling when you claim. Others use flat community rating with no NCD. The models suit different people: NCD rewards non-claimants but makes claiming feel costly.
Should I use a broker at renewal time?
It usually costs you nothing extra and often saves money: brokers are paid commission by insurers at the same rates whether you buy direct or through them, they can access switch (CPME) terms across the market, and they'll run the renegotiation with your current insurer for you. The main caution is confirming any broker covers the whole market rather than a small panel.