The global health insurance market was valued at $3,153 billion in 2018, and is estimated to reach $4,475 billion by 2026, registering a CAGR of 4.4% from 2019 to 2026. Health insurance provides the policyholders with financial coverage for medical expenses when they are hospitalized. Medical expenses are incurred due to the physician consultation charges and treatment done for any disease, injury and other mental & physical impairment. health insurance provides compensation for such medical expenses in exchange for a monthly premium or a payroll tax to provide health benefits. The insurer is obliged to cover medical expenses for the policyholder up till the tenure of the policy. Depending on the policy, the coverage may vary for numerous factors, including diseases, age group, government policies, and others.
Health insurance provides quick reimbursement for people suffering from diseases with minimum premium amount. In addition, health insurance market growth owing to coverage for all treatment such as critical illness and large & small surgeries with less amount of premium. Moreover, it offers affordable Health services such as preventive care, hospitalization, office visits, immunizations, and others. However, some public providers do not cover insurance for highly expensive treatment and for diseases such cancer and dental recovery.
On the contrary, numerous wellness programs are arranged for insured members that include gym membership, weight loss programs, and chiropractic services. In addition, health insurance allows policyholders to visit any in-network doctors or licensed doctors. Visiting an in-network doctor may provide with better facilities and easier processing of the insurance policy.
The major factor that drive the growth of the health insurance market include rise in health expenses and increase in prevalence of chronic diseases. Furthermore, the mandatory provision of health insurance for private and public sector employees propel the growth of the health insurance market. However, limited availability of health insurance policies merely for specific hospitals & clinics and exclusion of certain expensive medical treatment are expected to hamper the market growth. Conversely, introduction of advanced technology in health settings is expected to provide lucrative opportunity for the expansion of the health insurance market.
Depending on provider, the health insurance market share is bifurcated into private providers and public providers. The private providers segment is expected to be the largest contributor to the health insurance industry during the forecast period, owing to the fact that private providers offer prompt referral to a consultant, advanced treatment option, and quick & flexible treatment time in private hospitals to subscribers.
Insurance type segment review
By insurance type, the trends of the health insurance market analysis are classified into disease insurance, medical insurance, and income protection insurance. The medical insurance is the largest contributor toward the health insurance market growth, owing to increase in the number of road accidents that incur expenses for costly surgeries. Furthermore, medical insurance covers cost of medical admission, diagnostic tests such as MRI & CT scan, surgery, cost of seeing consultants, hospital accommodation, and nursing care, which fuel the adoption of medical insurance, thereby supplementing the growth of the overall market.
Region segment review
The study analyzes the current market trends of global health insurance market analysis across different regions such as North America, Europe, Asia-Pacific, and LAMEA. Among these, North America was the major revenue contributor to the health insurance market in 2018, owing to accessibility of multi-value health insurance policies. In addition, availability of favorable health insurance landscape in the U.S. positively impacts the growth of the market. Furthermore, as Health facilities are expensive in the U.S., employers offer health insurance to the employees as a job benefit.
However, Asia-Pacific is expected to grow at the highest rate during the forecast period in the health insurance market. This is attributed to availability of expensive health facilities and increase in demand for health insurance policies in high populous countries such as India and China. The availability of low- and middle-class economy groups in these countries that currently are not insured is expected to provide health insurance market opportunity.
The kay players operating in the global health insurance industry include Allianz Group, Assicurazioni Generali S.p.A., AIA Group Limited, Anthem, Inc., AXA Equitable Life Insurance Company, China Life Insurance Company Limited, Munich Re, Ping An Insurance (Group) Company of China, Ltd., State Farm Group, and Zurich Insurance Group.
The other prominent players in the value chain analysis (not included in this report) operating in the global health insurance market are Berkshire Hathaway Inc., Prudential plc, Nippon Life Insurance Company, Dai-ichi Life Holdings, Inc., Kaiser Foundation Group of Health Plans, Berkshire Hathaway Inc., New York Life Insurance Company, and Life Insurance Corporation of India.
Key Benefits for Health Insurance Market:
- This report entails a detailed quantitative analysis of the current health insurance market trends from 2019 to 2026 to identify the prevailing opportunities.
- Global health insurance market forecast based on comprehensive analysis of the key developments in the industry.
- The global health insurance market size is comprehensively analyzed with respect to providers, insurance type, coverage type, demographics, network, and region.
- In-depth analysis based on region assists to understand the regional market to assist in strategic business planning.
- The development strategies adopted by key manufacturers are enlisted to understand the competitive scenario of the market.