The history of Private Medical Insurance

US Origins

The concept of Private Medical Insurance can actually be traced back to mid 17th century England, but it wasn't until the 19th century that what was commonly referred to as 'accident insurance' was made formally available. In the USA Franklin Health Assurance Company of Massachusetts, which was founded in 1850 began to offer insurance against injuries arising from railroad and steamboat accidents. The company was so successful that by 1866 over 60 companies had (literally) 'jumped on the bandwagon' and began to offer similar services -however, this initial boom levelled out eventually.

NHS stimulates Private Healthcare in the UK

The growth of Private Medical Insurance in the UK was ushered in with the creation of the NHS in 1948. Although the service could provide a decent level of service free of charge there were still a significant number of people who were keen to ensure a higher level of healthcare. The industry began to grow concurrent to the NHS and by the late 1950s there were three major firms that dominated the industry - PPP (now AXA PPP healthcare) BUPA and the WPA.

As the population of the UK grew and the strain on the NHS increased, more people began to take out Private Health Insurance policies. Many companies also began to offer health cover as a part of their benefit packages to attract and retain the best employees. This twin growth factor has contributed to the growth of the sector into the huge industry that it has evolved into today. Since the 1960s the number of perople with Private Health Cover in the UK has approximately doubled every decade, and its estimated that around 7 million people in the UK have some form of health insurance cover.

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