Global Health Insurance Market Size, Segmentation, Trends and Growth Analysis Forecast by 2030

Health Insurance Market Analysis and Size :

The Global Health Insurance Market is currently valued at USD 2.01 trillion in 2022, registering a CAGR of 19.5% over the forecast period (2022-2030).

Health insurance or medical insurance is a type of insurance that covers the whole or a part of the risk of a person incurring medical expenses. As with other types of insurance, the risk is shared among many individuals. By estimating the overall risk of health risk and health system expenses over the risk pool, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to provide the money to pay for the health care benefits specified in the insurance agreement. The benefit is administered by a central organization, such as a government agency, private business, or not-for-profit entity.

The main factors driving the growth of the studied market are increasing emphasis on the demand side of the insurance transaction such as affordability of premiums, comprehension of insurance products, trust of insurance companies, and need for coverage, or availability of substitutes.

Health Insurance Market Latest Trends:

The health insurance industry has changed in terms of offering new products and is growing day by day in terms of generating revenue. There were a few trends that are expected to impact the health insurance industry post-COVID-19. Furthermore, the introduction of new insurance policies, digitalization, value-added services, coverage for makeshift setup, cost transparency, and artificial intelligence are expected to drive the growth of the studied market.

Segmentation - 

The Health Insurance Market is Segmented

By Service Provider

• Public
• Private

By Type

• Hospitalization Insurance
• Critical Illness Insurance
• Income Protection Insurance
• Medical Insurance

Network Provider

• Health Maintenance Organization (HMO)
• Preferred Provider Organization (PPO)
• Exclusive Provider Organization (EPO)
• Other Network Providers

Geography

• North America
• Europe,
• Asia-Pacific
• Middle East
• Africa
• South America

The report offers market size and forecasts in value (in USD million) for all the above-mentioned segments.

Driver & Restraints :

Increasing GDP and Healthcare Expenditure

Healthcare spending and the impact that it has on economic performance are important considerations in an economy. Some studies have shown that improvements in health can lead to an increase in Gross Domestic Product (GDP) and vice versa. Healthcare holds a significant place in the quality of human capital.

The increased expenditure on healthcare increases the productivity of human capital, thus making a positive contribution to economic growth. The recent research published by OECD in January 2023, reported that the average health expenditure growth of 5% in 2020, driven by the exceptionally high growth in spending by government and compulsory schemes (+8.1%) in response to the additional need to address the COVID-19 pandemic.

Similarly, another article published by American Medical Association in March 2023, reported that health spending in the U.S. increased by 2.7% in 2021 to USD 4.3 trillion or USD 12,914 per capita. Thus, the increasing healthcare expenditure is leading to increasing demand for medical insurance, thereby driving the growth of the studied market over the forecast period.

Increasing Geriatric Population and Chronic Diseases

Aging is a strong risk factor for many chronic diseases. Most health insurance policies covering chronic diseases come with lifetime renewability features. The increasing chronic diseases along with the rising geriatric population is increasing the demand for health insurance, thereby contributing to the studied market growth. For instance, the United Nations in January 2023, reported that the number of people aged 65 years or older worldwide is projected to more than double, rising from 761 million in 2021 to 1.6 billion in 2050. The number of people aged 80 years or older is growing even faster. Thus, such instances show that the growing geriatric population is contributing to the studied market growth.

Increasing Government Issues for Developing Reimbursement Policies for Surgical Procedures

Chronic disease has become a major problem affecting the health of the global population. The statistics published by the National Association for Chronic Disease Directors in April 2022, reported that nearly 60% of adult Americans have at least one chronic disease in the year 2021, and Chronic conditions like diabetes, cancer, and cardiovascular disease have affected more than two-thirds of all deaths in the region. The source also reported that cardiovascular disease is responsible for one in three deaths in 859,000 people in the United States.

Restraints

Stringent Regulations and Reimbursement Issues Strict restrictions for reimbursement in healthcare insurance may slow down the growth of the studied market. As a result, the growth of the studied market may slow down over the forecast period.

Covid-Impact Health Insurance Market

The COVID-19 crisis had a significant impact on individuals, society, businesses, and the wider economy across the globe, and since the demand for medical health insurance policies increased during the COVID-19 times as the health insurance, the market witnessed significant growth over the forecast periods. For instance, in July 2022, an article published by the National Center for Biotechnological Information that India reported an increase of 26.7% increase health insurance coverage users in the year July 2022 as compared to the previous year. Thus, such instances showed that the benefits associated with health care insurance during such unprecedented times have driven the growth of the studied market. In the current scenario, it is expected that due to the increase in diseases, the market is expected to witness significant growth over the forecast period.

Segmental Analysis:

Private Health Insurance Providers are Expected to Witness Significant growth Over the Forecast Period

Private health insurance refers to health insurance plans marketed by the private health insurance industry.  The benefits associated with private health insurance providers like reduced waiting times, enjoying a one-on-one approach, and choosing from various high-quality doctors are all advantages that render private healthcare highly demanded and popular and are driving the growth of the studied market.

Hospitalization Insurance Segment is Expected to Witness Significant growth over the Forecast Period

Hospitalization insurance is a health insurance policy that covers payments for hospital stays, outpatient medical treatment, surgery, or any hospital-related activity that involves the insured's health. Furthermore, the introduction of new private healthcare insurance providers is driving the growth of this segment. For instance, in August 2023, ManipalCigna Health Insurance was appointed as the lead health insurer under the State Insurance Awareness Plan in Karnataka by the Insurance Regulatory and Development Authority of India (IRDAI) to expand insurance coverage and create health insurance awareness across the state. Thus, such developments are contributing to the studied segment growth.

Exclusive Provider Organization (EPO) Segment is Expected to Witness Significant growth Over the Forecast Period

It is an exclusive provider organization that is a hybrid health insurance plan in which a primary care provider is not necessary, but health care providers must be seen within a predetermined network. Out-of-network care is not provided, and visits require pre-authorization. In this plan, one typically has far-reaching coverage for visits inside your network, which can help you save a significant amount of money on the cost of the visit.

North America is Expected to Witness Significant growth Over the Forecast Period

The region is expected to witness significant growth over the forecast period owing to the increasing prevalence of chronic disorders is a major factor contributing to the growth of the market. It can be very challenging for people to receive treatment for chronic conditions like cancer and heart disease. Furthermore, due to the presence of major companies in the region that are focusing on implementing a number of strategies, including joint ventures and collaborations, the introduction of new products, and investments in regional insurance firms are expected to contribute to the growth of the market in the region. For instance, in November 2022, Cigna expanded its Medicare Advantage (MA) plan in Connecticut. This plan is beneficial for people who qualify for Medicare due to the fact that it covers benefits that original Medicare does not. Thus, such developments are fueling the studied market growth.

Competitive Landscape Health Insurance Market

The Global Health Insurance Market is highly fragmented due to the presence of many market players working globally and regionally. Some of the key market players working in this domain are :

Key Players: 

• Aetna
• Anthem Health Insurance
• Centene
• Cigna Corporation
• HCSC, Highmark Inc.
• Jubliee Holding Limited
• Kaiser Permanente Ottonova
• United Healthcare

Recent Development

• In February 2023: Cigna Worldwide Insurance Company became the first international insurance provider to get a branch license from the Saudi Central Bank, allowing the firm to operate in the Kingdom of Saudi Arabia.
• In February 2022: ManipalCigna Health Insurance Company Limited, today announced the launch of its new health insurance plan ‘ManipalCigna Prime Senior’, specifically designed for senior citizens to access the quality healthcare they need for the golden years of life. The new plan gives flexibility with lower waiting periods and provides coverage for pre-existing disease conditions from the 91st day onwards.

Frequently Asked Questions (FAQ) :

Q1. What is the Growth Rate of the Health Insurance Market ?

Q2. Which Region is expected to hold the higest Market share?

Q3. What Is Health Insurance Market ?

Q4. What segments are covered in the Health Insurance Market Report?