The slump in sales of private medical insurance may soon be a thing of the past according to independent analyst Laing and Buisson.

Figures suggest that demand has dropped by just 0.5% throughout the whole of 2007 sparking speculation that a major turn around could be around the corner despite the ever looming presence of the credit crunch.

The report commissioned by economist Philip Blackburn said: "Individual policyholders have fallen from a peak of 1,457,000 in 1996 to a low of 1,091,000 at the end of 2007, but a reported pick up in individual PMI demand by several leading insurers in the first half of 2008 suggests that the falling trend may level off this year."

He concluded: "A second successive rise in PMI demand, although relatively modest, confirms the unfading popularity of private healthcare cover, particularly in the corporate world, but also from individuals willing to spend increasing amounts to be covered."