Figures released by The ABI (Association of British Insurers) show that last year, more people and businesses signed up for medical insurance than ever before. At the end of 2001 over 6.5 million people had private medical insurance, either through their employer or by way of an individual policy.

The biggest increase - up 8% on the previous year - was in businesses buying private health cover for their staff. Private health is cited by employees as the second most popular benefit after pensions. With more employers providing medical insurance for their staff and their families in order to recruit and retain high quality people, this reduces the need for people to buy individual policies. This is why the number of individual subscribers has fallen over the last few years. Total claims paid last year amounted to £1,920m.

Richard Walsh, ABI's Head of Health Insurance, said: "People want medical insurance because it offers choice over where they are treated, and enables them to see a consultant at a convenient time without waiting. "It makes a major contribution to the health of the nation. Private medical insurers paid for over £5m worth of health care every day last year. We are encouraged that employers continue to recognise the value of providing private medical insurance to their staff. Swift medical treatment causes less disruption to business, and provides peace of mind to staff.

"There is a growing public demand for medical insurance to cover leading edge technology and treatments. Other pressures on the industry include an increase in the number of elderly people, the availability of more treatments, and medical technology, plus a more informed consumer, whose health expectations are different and more demanding than ever before."