A health insurance policy covers the healthcare costs of the insured person in exchange for a premium. It covers different kinds of healthcare expenses which include surgical, prescription drugs, medical and dental expenses among others. It can either reimburse the insured person for health expenses occurred by him/her or can pay the healthcare provider directly. It is often covered in the benefits package provided by the employer as a means of enticing quality employees with a partial premium covered by the employer but frequently deducted from the employee’s paycheck. Healthcare insurance policy is purchased considering various factors including plan rules regarding in-and out-of-network services, copays, and deductibles among others.
- As per the Report, The global health insurance market was valued at around USD 2,105.3 billion in 2021 and is expected to register a CAGR of approximately 9.4% during the forecast period 2022-2030.
- Advancement in technologies to treat severe diseases is resulting in increased medical treatment costs and thus, driving the demand for a health insurance policy.
- The rising prevalence of chronic diseases due to changing lifestyles and bad eating habits is driving healthcare expenses.
Health Insurance Market Insights
Increasing medical costs is the prime factor driving the growth of the health insurance market across the geographies. Inflation rates in the medical sector are rising at a higher rate in comparison to that of food and clothing. Health insurance plans offer considerable flexibility with respect to disease or ailment coverage.
The rising prevalence of chronic diseases has increased the financial burden on the public. Changing lifestyles and unhealthy eating habits are driving the incidences of chronic diseases. Additionally, rising pre & post-hospitalization expenses, domiciliary hospitalization costs, and ambulance expenditures are also driving the need for health insurance policies. Furthermore, advances in technologies to treat severe diseases further increase the treatment cost.
Health insurance plans offer various superior benefits to the insured person which include easy cashless claims, coverage of critical illnesses at an additional cost, help to deal with ever-increasing medical costs, tax savings, and added protection. It assures future security with respect to both health-wise and money-wise.
Rising demand for health insurance policies that provide better claim management services and more benefits with respect to medical expenses is likely to create lucrative opportunities for the players operating in the global health insurance market during the review period.
Furthermore, the growing emphasis on organizing marketing campaigns that focus on creating awareness about health insurance plans in rural areas coupled with increasing government support is also expected to bolster the market growth significantly during the forecast period 2022-2030.
The spread of covid-19 witnessed a positive impact on the growth of the health insurance market in the year 2020. It encouraged people to look for insurance solutions that covered risks resulting from a health crisis and thus, reduce the financial burden of the insured person during any health crisis.
However, a lack of knowledge and awareness among consumers regarding the existence and benefits of health insurance policies is affecting the growth of the health insurance market. In addition to this, rising healthcare insurance premium costs are another factor affecting the market growth, particularly in underdeveloped countries across regions.
Based on coverage type, health insurance solutions can be categorized as exclusive provider organizations (EPOs), preferred provider organizations (PPOs), health maintenance organizations (HMOs), and point of services (POS). The exclusive provider organizations segment accounted for the largest market share in 2021. Health insurance policies can be bifurcated into medical insurance and disease insurance.
Based on end-user, the global health insurance market has been segmented into groups and individuals. Group health insurance is widely preferred as it is less costly and provides insurance to the person and his/her family as well.
Geographically, the global market can be segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. The market in North America accounted for the largest share in 2021 and is expected to register significant growth in the coming years. The regional market growth can be attributed to the rising prevalence of chronic diseases among patients coupled with expanding geriatric populace in the region, particularly in the US. The presence of established players in the US is another important factor propelling the market growth in the region.
The market in Europe accounted for a substantial market share in 2021 and is expected to exhibit considerable growth during the review period. Germany, UK, Italy, and France are the key countries contributing to the market growth in the region. The regional growth can be primarily attributed to strong presence of the healthcare industry and rising health expenditure, particularly by the old age population.
The health insurance market in the Asia-Pacific region is expected to register healthy growth in the coming years on account of increasing awareness about the existence and benefits of health insurance plans in developing countries. The high adoption rate of health insurance policy in Japan and China are driving market growth in the region.
Some of the key players operating in the global health insurance market include AIA Group Limited, AETNA INC., Assicurazioni Generali S.P.A., Allianz, Aviva, Cigna, AXA, Ping An Insurance (Group) Company Of China, Ltd., ZURICH and Unitedhealth Group among others.