Health Insurance Market, By Type of Insurance Provider (Public, Private, Standalone Insurers), By Type of Scheme (Voluntary, Mandatory, Community-Based, Employer-Based), By Type of Coverage (Individual, Family), By Term of Coverage (Term, Lifetime), By Demographics (Minor, Adult, Senior Citizen), By Region (North America, Europe, Asia-Pacific (APAC), Latin America (LATAM), Middle-East & Africa (MEA) Trend Analysis, Competitive Market Share & Forecast, 2017-2027
Global Health Insurance Market Growing Significantly to Garner USD 3.4 trillion by the end of 2027
The global health insurance market is growing at a high CAGR due to the increasing prevalence of chronic illnesses and health issues. Additionally, the market is driven by the increasing number of injuries and accidents, as well as an increase in medical expenses….
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the health insurance market was worth USD 1.8 trillion in the year 2020. According to the study, the market is estimated to grow at a CAGR of 9.8%, earning revenue of around USD 3.4 trillion by the end of 2027. The global health insurance market is gaining significant traction because of the increasing prevalence of various healthcare issues and chronic illnesses, along with surging medical expenses across the globe. Furthermore, favorable government policies are also contributing to the market growth. For instance, with the Affordable Care Act, Americans have gained new rights and benefits, including the ability to get health insurance for more children. It also grants free access to recommended preventive services.
However, the market also has its own share of drawbacks. For instance, complications in claiming reimbursement and increased fraud cases in the health insurance market may act as a major restraint.
Growing Demand for Individual Insurance Policy is Boosting the Global Health Insurance Market Growth
The health insurance market is grouped into individual and family segments, based on the type of coverages. Individual coverage accounts for the largest market share in the health insurance market owing to the increasing number of adults opting for health insurance. Moreover, the increasing prevalence of various chronic conditions, such as diabetes, liver disease, cardiac diseases, etc., among the adult population acts as a major driver for the individual coverage segment. On the other hand, the family coverage segment is also popular, especially in developed countries, as this type of policy facilitates tax savings, which proves to be economical.
Global Health Insurance Market - By Term of Coverage
The health insurance market is categorized into term and lifetime, based on the term of coverage. The lifetime health insurance segment holds the largest market share because of the conveniences it offers over term health insurance. Lifetime policies guarantee benefits even in the unfortunate event of death. Moreover, the policy does not have to be renewed every year. Insurance companies further offer discounted premiums for long-term plans in order to attract customers and often charge less for young people seeking coverage. Furthermore, short-term policies are also popular among middle-income groups of developing countries due to their affordable premium rates.
Global Health Insurance Market - By Demographics
Based on demographics, the health insurance market is categorized into minor, adult, and senior citizens. The senior citizen segment accounts for the largest market share due to the increasing geriatric population and prevalence of various chronic and other medical conditions in this demographic. Health insurance providers offer special policies for senior citizens aged 60 or above that cater to their specific healthcare needs. Additionally, governments of various countries also offer tax exemptions for senior citizens’ health insurance, which favors its market growth. Adult health insurance policies are also gaining traction due to the prevalence of medical issues among working adults.
Global Health Insurance Market - Regional Insights
Geographically, the health insurance market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle-East & Africa. Among these regions, North America dominates the health insurance market. However, the Asia-Pacific region is projected to witness the highest CAGR during the forecast period due to the presence of a largely untapped market. The insurance companies in this region are significantly focusing on marketing the benefits of health insurance to bring it in good light among the general public. Furthermore, increasing disposable income and healthcare expenditure, especially in emerging economies, such as China and India are also emerging as one of the major driving factors for the market’s growth.
Impact of COVID-19 on the Global Health Insurance Market
The global health insurance market received significant growth opportunities after the COVID-19 pandemic outbreak. With increasing incidences of COVID-19 cases and uncertainty surrounding one’s health, the demand for health insurance witnessed a sharp surge during the pandemic. For instance, there were only 13% of Britons with private medical insurance prior to the pandemic, but a rise in young people purchasing medical insurance policies has resulted in the average age dropping from 40 to 33 since 2020. Furthermore, many insurance companies launched Coronavirus Health Insurance to tap on the market opportunity and offer assistance for COVID-19 treatment. This emerged as the major driving factor for the market growth. Furthermore, the prevalence of other health issues also registered a surge during this period, thereby driving the health insurance market during the forecast period.
Global Health Insurance Market - Competitive Landscape
The leading players in the health insurance market are Cigna Corporation, AIA Insurance Group, UnitedHealth Group Inc., Allianz SE, Zurich Insurance Group Ltd., Express Scripts Holding Company, AXA, Aviva plc, Aetna, Inc., Apollo Munich Health Insurance, International Medical Group, Kaiser Permanente, Jubilee Holding Limited, Highmark Inc, BMI Healthcare, Vitality Corporate Services Limited, Centene Corporation, Assicurazioni Generali S.P.A., Anthem Insurance Companies, Inc., and other prominent players.
The global health insurance market is highly concentrated due to the presence of the established players enjoying consumer loyalty and trust. Therefore, the market is very dense for new entrants. The companies often engage in partnerships with healthcare facilities to boost their health insurance sales and expand their market revenue. Furthermore, the adoption of market strategies such as mergers, acquisitions, collaborations, joint ventures, is also prominent in this market.
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