Healthcare cash plans lead FCA value rankings
Healthcare cash plans remain the top-performing line of general insurance in the UK when measured by the proportion of premiums paid out in claims, according to the latest data from the Financial Conduct Authority.
Cash plans lead with highest payout ratio
An analysis of the FCA’s 2025 General Insurance Value Measures shows that 68.1% of healthcare cash plan premiums were returned to policyholders as claims. While this represents a slight decline from 68.7% in 2024, it still outpaces every other insurance product tracked by the regulator.
The claims acceptance rate for these plans dipped slightly, from 92.8% to 91.1% year-on-year.
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Motor and pet insurance show improvement
Pet insurance saw a modest rise in its payout ratio, with 62.8% of premiums paid out in claims—up from 58.6% in 2024. It now ranks second in the FCA’s value measures, just ahead of motor insurance, which recorded a more significant jump to 59.1% from 54.2% the previous year.
Motor insurance also led in claims acceptance, with 98.7% of claims approved in 2025.
Kathryn Moore, Senior Actuarial Director at Broadstone, noted that while claims ratios are a key indicator, they don’t tell the whole story. “Healthcare cash plans continue to demonstrate strong value for policyholders, with more than two-thirds of premiums paid back out through claims in 2025—the highest proportion across the general insurance products included in the FCA’s value measures data,” she said.
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Moore added that the improvements in motor and pet insurance highlight the role these policies play in shielding consumers from unexpected costs. “Pet insurance has similarly moved in a positive direction, highlighting the value these policies can provide in protecting owners from potentially significant and recurring veterinary costs,” she said.
Still, she cautioned that claims ratios should be weighed alongside other factors, including coverage limits, exclusions, and overall customer outcomes. The data, she said, offers “encouraging evidence” that these products are providing meaningful financial support when policyholders need it most.
