Health Insurance Market Size By Service Provider (Private, Public), By Type (Hospitalization Insurance, Critical Illness Insurance, Income Protection Insurance, Medical Insurance), By Network Provider (Health Maintenance Organization [HMO], Preferred Provider Organization [PPO], Exclusive Provider Organization [EPO]), By Age-group (Minors, Adults, Senior Citizens), By Time Period (Life Insurance, Term Insurance), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2021 - 2027
The health insurance market is set to gain significant traction by 2027 owing to increasing healthcare expenditure worldwide. In addition, growing geriatric population globally, is likely to propel market demand through the forecast timeline.
The ongoing COVID-19 outbreak has prompted people to purchase adequate health insurance to ensure financial coverage for medical emergencies, unexpected hospitalization, and treatment expenditures. The pandemic has also spurred the demand for preventive health insurance on account of increasing emphasis on healthcare and wellbeing. Moreover, favorable government initiatives to include coverage for COVID-19 treatment has fueled industry growth during the pandemic.
Notably, prominent industry players are employing lucrative strategies to strengthen their foothold in the rapidly evolving market by establishing partnerships, engaging in mergers & acquisitions, and so on, which has favorably altered the global business landscape. For instance, in September 2021, Highmark, Inc., a leading health insurance company, announced the acquisition of Gateway Health Plan, Inc., a managed care organization. The acquisition enabled Highmark to better serve existing and future Medicare and Medicaid members across Pennsylvania.
For comprehensive assessment, the health insurance market has been categorized on the basis of network provider, service provider, time period, age-group, type, and region. Based on service provider, the market has further been divided into public and private. The public sub-segment is estimated to reach a significant valuation of over USD 2,413.5 billion by the end of 2027.
With respect to type, the market has been segmented into income protection insurance, hospitalization insurance, medical insurance, and critical illness insurance. In 2020, the critical illness insurance sub-segment registered a revenue of around USD 1,101.9 billion and is predicted to expand at a steady pace over 2021-2027.
By network provider, the market has been classified into exclusive provider organization (EPO), health maintenance organization (HMO), preferred provider organization (PPO), and others. The health insurance market from the exclusive provider organization (EPO) sub-segment is expected to surpass a valuation of USD 1.5 trillion by 2027.
In terms of age-group, the market has been segregated into senior citizens, adults, and minors. The minors sub-segment accounted for nearly 23.9% market share in 2020 and is anticipated to witness optimistic growth through the stipulated timeframe.
Based on time period, the market has been bifurcated into term insurance and life insurance. The life insurance sub-segment is slated to showcase considerable growth at a CAGR of more than 4.7% over the review period.
From the regional point of view, the Latin America health insurance market accounted for over 6.3% of the overall industry revenue in 2020 and is speculated to witness robust growth through 2027. The Middle East & Africa healthcare insurance market is speculated to expand at a CAGR of approximately 4.0% through the study timeline.
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