The health of the nation is apparently “going backwards” according to data released by The Health Foundation in late April 2026, following a deep-dive analysis of figures from the Office for National Statistics (ONS). So how should insurers be moving forwards given this concerning picture? In this exclusive analysis for IFA Magazine, Dr Arun Thiyagarajan, CEO at Vitality Health, highlights why this really is a watershed moment and one that advisers need to consider when building clients’ financial plans.
Last week saw reports in the national news, suggesting the health of the nation is “going backwards”. The length of time that people in the UK can expect to live in good health has fallen by just over two years, according to new analysis from the Health Foundation. Describing this as a ‘watershed moment’ the thinktank warns of major implications in terms of the workforce, productivity and long-term pressure on health services. The Health Foundation says these findings put the UK near the bottom of international league tables among comparable wealthy countries.
We’re seeing the knock-on effect of this within private medical insurance (PMI). Earlier this year, the Association of British Insurers (ABI) revealed that health insurers had processed a “record” £4bn in individual and workplace PMI claims in 2024 – up 13% compared to 2023 (£3.57bn).
The ABI describes 2024 as a “record-breaking year” for claims, but is it time we evolved this thinking? Wouldn’t it be even better if we could report that claims were down because we’d prevented X% of illnesses? What if we could show correlations – and ideally, in time, causation – between the health interventions we provide and a reduction in serious illness? That would be something well worth shouting about. And, if the Health Foundation’s analysis is anything to go by, it’s arguably the way the entire industry should be heading.
UK health and productivity needs us!
This represents our direction of travel, here at Vitality, as part of our annual Health Claims and Insights Report. We can already evidence the role prevention and early intervention play – via our Everyday Care usage – in catching serious illnesses, such as cancer, before treatment becomes more complex and costly.
For example, for overall claims highly active* members saw 27% lower healthcare costs and those who were a healthy weight had a 35% lower risk of hospitalisation.
The role of physical activity in reducing the risk of non-communicable (or lifestyle related) diseases is strongly evidenced now. Just last year, research published in Lancet Public Health found that walking 7,000 steps a day can be enough to help cut health risks; everything from cardiovascular disease, cancer and type 2 diabetes to mental health outcomes. The findings suggest 7,000 steps may be a more realistic target than 10,000 steps; traditionally seen as the benchmark to reach.
Aligned with this research, the Vitality Habit Index, in partnership with the London School of Economics, found that for optimal health gains, 7,500 steps three times a week should represent the goal. Our findings also went further than this, revealing that the ‘sweet spot’ for achievable and maintainable habit formation was just 5,000 steps 3x a week.
Employers and employees are feeling the effects
Helping people live longer in good health generates obvious value for people, but also for businesses / the economy, as highlighted by the Health Foundation’s analysis.
This mirrors findings from Vitality’s ‘10 years of Britain’s Healthiest Workplace’ (BHW). And, in our view, should be considered a rallying call to all health insurers, intermediaries, and employers across all UK industries.
BHW, one of the largest surveys of employee wellbeing, reported lost productivity doubling over the course of a decade; 90% of which was caused by presenteeism. This brings huge costs to employers; the number of days’ productivity lost per employee due to health and wellbeing issues equated to approximately 20% of an employer’s wage bill. This underscores the need to prioritise employee wellbeing and to register it as a tangible risk facing businesses.
The Health Foundation revealed that the decline in Britons’ health in recent years is so significant that, in more than 90% of the UK, people now start suffering from illness before the state pension age of 66. This is arguably contributing to the 1 in 8 forced out of the labour market due to ill health before official retirement age, as reported in the past by TUC.
Turning the tide requires tackling the root causes of poor health. That means engaging people in building healthy habits. And UK employers of all shapes and sizes are well placed to help.
This starts with having the right measures in place to drive accountability for employee health and wellbeing. And then better communication, personalised to employees and coupled with attractive incentives, to drive engagement.
AI and evidence-based data: the key to large scale behavioural change
Thanks to AI, new opportunities – such as what Vitality has done by partnering with Google – have emerged to ensure truly hyper-relevant and personalised health and wellbeing recommendations to millions of customers. These recommendations include lifestyle choices like physical activity and sleep, as well as screenings, chronic disease management and wellness coaching.
And the impact and potential of this type of approach is striking. Based on data from Discovery, Vitality’s parent company, AI-powered, personalised screening recommendations have already led to a 19% improvement in early cancer detection, underscoring the power of targeted prevention.
This is where the watershed moment sits. The greatest health crisis facing the UK – and the world – is behavioural; non-communicable diseases like heart disease, cancers and diabetes, driven by lifestyle. AI and longitudinal health data now give us the means to help people change those behaviours and become active participants in their own health. That is a meaningful step forward for people, for business and for society.
*Based on in-hospital cost-per claim for Vitality members recording 4 or more active days per week on average, compared to those with an average of 0. VitalityHealth claims data 2021-2024.
