Pune, India, May 23, 2022 (GLOBE NEWSWIRE) — The global health insurance market size is set to reach USD 3.0386 Trillion by 2028. Fortune Business Insights™ presented this information in a new study, titled, ““Health Insurance Market, 2021-2028.” The study further mentions that the market stood at USD 1.9666 Trillion in 2020. It would exhibit a CAGR of 5.5% in the forecast period between 2021-2028. Several government and private agencies are introducing new schemes to attract more customers. In December 2020, for instance, ICICI Lombard unveiled its latest ‘ICICI Lombard Complete Health Insurance’ featuring unique benefits and health plans.
Health insurance covers medical expenses incurred during treatment of any disease, injury, or other mental & physical impairment. It acts as compensation in exchange for a monthly/semi-annual/annual premium or a payroll tax to provide healthcare benefits. The insurer is obliged to cover medical expenses for the policy holder up till the tenure and coverage of the policy. Depending on the policy, the coverage may vary for numerous factors, including diseases, age group, government policies, and others.
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Private Providers Segment to Dominate Backed by Their Increasing Presence
Based on end-users, the market is divided into individuals and corporates. By the network provider, it is segmented into provider organizations (PPOs), point of services (POS), health maintenance organization (HMOs), and exclusive provider organizations (EPOs). Based on insurance type, it is segregated into medical insurance, critical illness insurance, and others. Here’s a brief note of the service provider criterion:
- By Service Provider: The market is bifurcated into private providers and public providers. Amongst them, the private providers segment is expected to dominate in terms of the health insurance market share throughout the forthcoming years. This growth is attributable to the surging entrance of these providers in developing economies worldwide.
|Forecast Period 2022 to 2029 CAGR||6.6%|
|2028 Value Projection||USD 3,038.6 billion|
|Market Size in 2022||USD 2,088.5 billion|
|Historical Data for||2017-2019|
|No. of Pages||135|
|Segments covered||By Product Type, By Application, By Age Group, By Service Provider, By Network Provider, By Geography, By End-User|
|Growth Drivers||Key factors contributing to the market growth during the forecast period are the increasing prevalence of chronic diseases and growing treatment costs|
|Launch of New Policies, Mergers, Acquisitions, and Partnerships to Propel Growth|
These are plans with a higher deductible than any traditional insurance plan. The monthly premium is usually lower, but one pays more health care costs themselves before the insurance company starts to pay its share (your deductible). A high deductible plan (HDHP) can be combined with a health savings account (HSA), allowing one to pay for certain medical expenses with money free from federal taxes.
The enrolment number for these plans continues to grow YoY, as many employees feel the need to combat the rising healthcare prices. Rising consumerization may continue to drive the tremendous growth of voluntary benefits among employees, and therefore, the HDHPs are gaining popularity, in order to manage costs. The large group market with more than 50 employees remains the most popular setting for HDHP and HAS enrolment, according to AHIP. In 2017, 82% of enrolment occurred in large employer settings, followed by the small-employer market (11%) and the individual market (7%)
Insurers can no longer deny coverage for pre-existing conditions, charge higher premiums based on health status or gender, revoke coverage when someone gets sick or impose annual or lifetime limits. About 54 million people have a pre-existing condition that could have resulted in them being denied coverage in the pre-ACA individual market. Private insurers now must cover a wide range of preventive services at no out-of-pocket costs to consumers. This includes recommended cancer and chronic condition screenings, immunizations, and other services. Nearly 150 million people are enrolled in employer plans or through individual market insurance that must provide these free preventive services.
To get to know more about the short-term and long-term impact of COVID-19 on Health Insurance Market Size, please visit: https://www.fortunebusinessinsights.com/health-insurance-market-101985
The health insurance market trends is accelerating in rural areas at a faster rate as it offers numerous benefits such as reimbursing the insured person’s illness treatment cost and paying a lump sum amount in prolonged case. In addition, customers in rural areas are more aware of health insurance comprehensive coverages, such as in-patient hospitalization expense, pre-hospitalization & post-hospitalization expenses, ambulance expenditures, and domiciliary hospitalization costs, which drives the market growth. Moreover, doctors and teachers in rural areas have increased the awareness of health insurance policy, which is propelling the growth of the health insurance market. Furthermore, government organizations, such as bank and co-operative bank, play a significant role to increase the penetration of health insurance products in rural areas as it delivers affordable insurance policy and streamlines the claim settlement process. Therefore, increase in awareness of health insurance in rural areas is propelling the growth of the market across the globe.
Health Insurance Market Size Is Projected To Grow From USD 2.0885 Trillion In 2021 To USD 3.0386 Trillion In 2028 At A CAGR Of 5.5% In The 2021-2028 Period.
The report provides intelligent insights on new product developments, R&D activities, and future technologies. At the same time, it delivers elaborate information about recent investments, developments, and untapped geographies. Besides, our analysts have conducted an assessment of manufacturing capabilities, strategies, and shares of renowned players.
Drivers & Restraints-
Emergence of Unique Healthcare Plans by Firms to Bolster Growth
The rising launch of state-of-the-art smartphone apps and new insurance schemes by various prominent companies would contribute to the market growth in the near future. Allianz Care, for instance, introduced its new suite of private health insurance plans in November 2019. These were specially developed for modern families. The new offering provides families, couples, and private individuals more control over their international healthcare policy. Similarly, in February 2021, Bharti AXA General Insurance launched a new healthcare offering named Health AdvantEDGE to deliver holistic protection against high expenses associated with medical emergencies amid COVID-19. However, strict norms governing the verification of plans to prevent fraudulent insurance claims may hinder growth.
Rising Prevalence of Chronic Disorders to Propel Growth in Asia Pacific
- North America: The market in this region stood at USD 953.7 billion in 2020. It is likely to remain in the leading position in the upcoming years backed by the expensive nature of medical products. At the same time, the increasing population opting for various health insurance policies would aid regional growth.
- Europe: Europe will remain in the second position because of the increasing awareness of the benefits of possessing health insurance plans. Also, governments of several European countries have made it mandatory for citizens to have at least one insurance policy.
- Asia Pacific: The region is expected to grow rapidly over the forecast period on account of the surging cases of chronic diseases and increasing population in developing countries, such as India and China.
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Mergers & Acquisitions to Be the Vital Strategy of Key Companies
The global market houses several renowned companies, such as Cigna Corporation, Centene Corporation, and United HealthCare Services, Inc. They are mainly striving to adopt the strategy of merger and acquisition to cater to the high demand. Below is one of the latest industry developments:
- November 2018: Aetna and CVS Health closed the merger of USD 69 billion. This would blend the former’s insurance business with the latter’s pharmacies. Both companies aim to simplify how customers access healthcare by making it cost-effective.
A List Of Reputed Health Insurance Companies Operating In The Health Insurance Market Size:
- CVS Health Corporation (Aetna health) (Woonsocket, U.S.)
- Humana Inc (Louisville, U.S.)
- Centene Corporation (St. Louis, U.S.)
- Cigna Corporation (Bloomfield, U.S.)
- United HealthCare Services, Inc (Edina, U.S.)
- Allianz (Munich, Germany)
- National Insurance Company Limited. (Kolkata, India)
- Anthem Health Insurance (Indianapolis, Indiana)
- WellCare Health Plans, Inc. (Tampa, U.S.)
- Bupa Global (London, U.K.)
Table Of Content: Health Insurance Market Size
- Research Scope
- Market Segmentation
- Research Methodology
- Definitions and Assumptions
- Executive Summary
- Market Dynamics
- Market Drivers
- Market Restraints
- Market Opportunities
- Key Insights
- Prevalence of Key Disease Conditions, Key Countries, 2019
- Technology Advances, Health Insurance
- New Product Launches, Key Players
- Key Developments, Mergers, Acquisitions, etc.
- Impact of Covid-19 on the Market
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