Christie Insurance highlights the growing competitiveness in Pharmacy Market Review 2025

The Insurance Landscape

The UK pharmacy insurance market has become increasingly competitive in recent years, driven by a general reduction in insurance rates. 

While this has created more options for pharmacy operators, the sector continues to face significant challenges. Rising operational costs and recent changes to National Insurance contributions are placing additional financial pressures on businesses across the industry.

The mix of independently-owned businesses, high street chains, and pharmacy groups means that insurance needs can vary widely depending on the size, structure, and services offered by each pharmacy.

One of the growing risks to pharmacies and many modern businesses is cybercrime. As patient records and prescriptions have become digitalised, they have become more vulnerable to cyberattacks. While premiums for cyber cover may be more accessible, it can still be seen as an additional cost.

Due to the nature of stock, particularly medications, and controlled drugs, pharmacies also face the risk of both opportunistic and targeted theft. While a comprehensive insurance policy should offer some level of protection against theft, having a Loss of Income policy is equally important. This can help cover the cost of temporary closure, relocation, and loss of revenue following a break-in.

In today’s evolving healthcare environment, choosing the right level of insurance cover is more important than ever.

Pharmacy operators must strike a balance between affordability and comprehensive protection, ensuring they are covered not only for traditional risks like theft and liability but also for emerging threats such as cybercrime.

Business Protection for Pharmacy Acquisition

Two long-time colleagues and Directors were referred through Christie Finance for support after securing lending to purchase the pharmacy where they had both worked for several years. With the current owner offering them the opportunity to take ownership, they saw it as a chance to grow the business together through to retirement.

To protect their investment and ensure business continuity, we discussed comprehensive business protection options. The Directors identified two
critical objectives:

• Key Person Insurance to safeguard the lending facility in case either Director was to pass away, allowing the debt to be cleared and protecting the business from financial strain

• Shareholder Protection Insurance to ensure that, in the event of one Director’s death, the surviving shareholder could retain control of the business while the deceased’s family would be fairly compensated for the value of the shares

Upon securing both policies, the Directors expressed full confidence that the business was not only financially protected but also positioned for long-term stability, regardless of unforeseen events. Their partnership and the future of the pharmacy now stand on solid ground.

This insight is drawn from the latest Christie & Co Pharmacy Market Review. To find out more about the current trends and opportunities in the pharmacy sector, read the full report by clicking the link above.

To discuss insurance for your business, get in touch:

Christie Insurance
E: enquiries@christieinsurance.com
M: 01908 920 570