"People expect reassurance during illness, not more stress."
- Matt Hall - MyHealthPal
MyHealthPal’s new analysis of data from the FCA and Office for National Statistics (ONS) has found that consumers spent approximately £3.06 billion on health insurance during 2025, while insurance became the largest contributor to complaint growth across UK financial services in May 2026.
Spending reached £923 million in Q2 alone, one of the highest quarterly figures recorded in decades.
Meanwhile, insurance complaints rose 10.1% in the second half (H2) of 2025, increasing from 717,523 complaints in H1 to 790,329 in H2, an increase of more than 72,000 complaints in six months and leading to an approximate ratio of 1 complaint per 86 people.
MyHealthPal claims that without the rise in insurance complaints, overall UK financial complaints would likely have fallen.
READ MORE: Protection complaints up by 10%, FCA reports
Insurance now accounts for roughly 42% of all UK financial complaints reported to the FCA.
Furthermore, over half (55.5%) of insurance complaints were upheld in the customers’ favour and firms received around 141,000 more complaints than they closed, while average compensation for upheld complaints remained above £200.
A separate MyHealthPal analysis also identified more than 76,000 health and medical insurance complaints in six months. Common frustrations included delayed claims, rejected treatments, policy exclusions, communication issues, and disputes around what policies actually cover.
The analysis suggests that many problems emerge not when customers buy insurance, but when they actually try to use it.
Complaints across the insurance sector are frequently linked to claims handling and policy administration. This suggests many customers only fully understand the limits of their cover during moments of illness, treatment, or financial stress.
While around 45% of complaints are resolved within three days, nearly 6% take longer than eight weeks. That can extend uncertainty during what is often a critical moment for patients seeking treatment or reimbursement.
"Health insurance is increasingly becoming part of how people navigate healthcare in the UK, particularly when NHS waiting times feel uncertain," Matt Hall, SME director and owner at MyHealthPal, said. "The data shows people are spending more on cover at the same time complaints across the wider insurance sector are accelerating.
"Insurance products are ultimately built around reassurance. But many frustrations appear to emerge at the exact moment customers need support most: during claims, treatment approvals, or reimbursement disputes.
"That creates a growing gap; people expect reassurance during illness, not more stress."
