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The market dynamics of the health insurance industry are profoundly influenced by the complex interplay of various factors, reflecting the evolving landscape of healthcare and the dynamic needs of individuals and organizations. One of the primary drivers is the increasing awareness of the importance of health insurance in mitigating the financial risks associated with medical expenses. As health care costs soar coupled with the more advanced treatment, an increased pressure for health insurance arises, hence an emphasis on comprehensive coverage and financial protection ultimately becomes necessary.
The existence of competing health insurance providers in the market causes the nature of competition within the health insurance market. Stipulation like plan affordability, coverage options, network size, customer service, and marketplace making these insurance companies remain unique in the market. Through numerous partnerships, mergers and acquisitions, these companies have become driving forces of innovation and they have a huge influence on the health insurance market trends thereby determining the available coverage plans.
The technology progression as well is crucial for building the amendments in the health insurance industry. Digital platforms integration, use of artificial intelligence and data analytics in the claims processing discipline result in the more efficient claims processing, insurance offering become personalized and offer customers a better experience. Tech-savvy insurers that put automation and digital empowerment into practice drive the process flow and boost customer interactions that people predominantly prefer today.
Socio-demographic tendencies in the form of an older population and changing of the healthcare needs impact the health care market. Already, the rise in the elderly population has created a market for tax works, which aims to tackle the specific medical needs of seniors. Looking to the future, lifestyle changes and rise of preventive healthcare are trends that enhance the popularity with plans that cover wellness and proactive disease management.
There are the challenges to distress that the spread of pandemics and various aversive illnesses pose to the health insurance market stability. Episodes similar to COVID 19 pandemic stress the necessity of health insurance being a financial safety net i,e. to assist you in unknown health calamities. The consumer demand on the private health care market will depend largely on an individual's experience during public health hazards, which will prevail a need for plans that are designed to include comprehensive coverage of unknown health situations.
Public awareness and communication strategies about the significance of health insurance that cover the market growth also encompass educative plan. Arguably, the most promising thing companies doing business in the health insurance sector can do is to make education efforts directed towards both individuals and businesses, informing them about the overall benefits, the different types of available coverage and the fundamental reasons to perceive healthcare choices as an active process.
Health insurance market is also greatly affected by changing values for value-based care and new modes of payment that are trending currently. Insurers that align their offerings with value-driven healthcare, focusing on outcomes and preventive measures, contribute to market preferences aligned with comprehensive and cost-effective coverage.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Segment Outlook | Demographic, Type, Period, Service Provider, and Region |
Health Insurance Market Highlights:
Health Insurance Market Overview
Health Insurance Market Size was valued at USD 62.95 billion in 2021 and is projected to grow from USD 69.23 Billion in 2022 to USD 178.06 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.8% during the forecast period (2023 - 2032). The prevalence of chronic diseases such as diabetes and hypertension and cost-sharing requirements imposed by insurers are driving the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Health Insurance Market Trends
- Automation and digitization in health insurance are boosting market growth
The increased adoption of automation and digitization across the globe has transformed the health insurance industry. There is a huge transition in the market through technology such as artificial intelligence and blockchain technology. Artificial intelligence is enhancing claim management with real-time claim processing. Machine learning has numerous applications, including predictive analysis, improved customer service, and data management. Moreover, blockchain technology is enabling faster data access, automated claim verification, and lower administrative costs. In addition, companies are launching a digital health insurance product for individuals, families, and small & medium enterprises (SMEs). For instance, in February 2022, Wellx.ai (United Arab Emirates) partnered with INSTANDA (UK) and launched digital health insurance. Furthermore, in February 2022, Policybazaar (India) launched its AI-enabled WhatsApp chatbot to automate and expedite the claim management process for its clients.
Nonetheless, there is a huge focus on mental health illness, and health insurers are covering mental health care services such as expert consultation and access to meditation applications. The market players are forming strategic alliances to boost market growth while focusing on trends. For instance, in May 2022, AXA (France) partnered with the Manas Foundation (India) and launched mental health in Indian group policies.
Therefore, a wide range of applications of automation and digitization, strategic alliances to automate the claim management process, and an increased focus on mental health illnesses are driving the growth of the market.
Additionally, the growing demand for health care and increasing competition among providers has led to a high rate of inflation in the industry. This, in turn, has led to an increase in premiums, deductibles, co-pays, and out-of-pocket costs for consumers.
Moreover, the market growth is consistently increasing owing to the rise in non-communicable diseases such as cancer, diabetes, cardiovascular diseases, and others across the globe. As per the International Diabetes Federation, there were 537 million adults suffering from diabetes in 2021 worldwide.
Health Insurance Market Segment Insights
Health Insurance Demographic Insights
The health insurance market segmentation, based on Demographic, includes minor, adult, and senior citizens. In 2021, the senior citizens segment held the majority share for the health insurance market's revenue. This is primarily due to the rising prevalence of communicable and non-communicable diseases among the elderly, as well as the increasing age of the world's population. For instance, the World Health Organization estimated in 2020 that there will be 2.1 billion people aged 60 and older by 2050.
December 2022: Bajaj Allianz (India) launched a health insurance for senior citizen "Respect Senior Care Rider". This insurance help provide services like emergency ambulance service, physiotherapy and nursing care at home.
Health Insurance Type Insights
The health insurance market segmentation, based on type, includes health maintenance organizations (HMOs), exclusive provider organizations (EPOs), point-of-service (POS) plans and preferred provider organizations. The point-of-service segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is due to the high benefits offered as compared to the traditional plan as well as growing awareness also boosting the segment growth.
October 2019: CoreChoice, Inc. (US) launched a medical cost containment model with an exclusive provider organisation (EPO) for the workers' compensation sector. This model will work with clients to develop specific networks within a given city, state, or region.
Health Insurance Period Insights
The health insurance market data has been bifurcated by surgery into lifetime coverage and term insurance. The term insurance segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. The term insurance plan offers financial security for the whole family as well as optional coverage for critical accidents and illnesses.
Figure 2: Health Insurance Market, by Period, 2021 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Health Insurance Service Provider Insights
Based on service provider, the health insurance industry has been segmented into public and private. The public segment is further bifurcated into Medicare and Medicaid moreover, the private segment has been further segmented into primary private health insurance, duplicate private health insurance, complementary private health insurance, and supplementary private health insurance. Public segment held the largest segment share in 2020, owing to offer plans and services to all segments of population. The public service providers include Medicare and Medicaid. Medicare is further subdivided into parts A, B, C, and D, which provide inpatient, outpatient, and prescription drug coverage, respectively. Moreover, the private sectors include the primary private health insurance, duplicate private health insurance, complementary private health insurance, and supplementary private health insurance.
Health Insurance Regional Insights
By Region, the study segments the market into North America, Europe, Asia-Pacific, and Rest of the World. North America Health insurance market is anticipated be the fastest growing region during the study period. This is attributed to the fact that there are numerous insurance companies that provide health & life insurance, and coverage is mandatory under the Affordable Care Act in the United States, which is driving the market's growth.
Further, the major countries studied are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: HEALTH INSURANCE MARKET SHARE BY REGION 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe health insurance market accounts for the second-largest market share. This is due to mandatory of having one insurance for health, increasing awareness about the tremendous benefits and requirements of health insurance are fueling the region's market growth. Further, the Germany health insurance market held the largest market share, and the UK health insurance market is the fastest growing market in the European region.
The Asia-Pacific Health insurance market is expected to grow at steady pace from 2022 to 2030. This is due to growing urban population, increasing ageing population, rising presence of private providers, and increasing launch of government schemes. Moreover, China health insurance market held the largest market share, and the India health insurance market was the fastest growing market in the Asia-Pacific region.
For instance, according to the World Economic Forum, after China, India had the second-largest geriatric population in 2020. Furthermore, the population in India is heavily focused on mental health illnesses, and market players are launching mental health insurance services that benefit children and adolescents.
Health Insurance Key Market Players & Competitive Insights
Market participants are taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the health insurance industry must offer cost-effective with numerous benefits health insurance plan to expand and survive in growing competitive and increasing market environment.
International Medical Group (US) is an award-winning insurance founded in 1990. It benefits and assistance services company that has served millions of members worldwide. In January 2022, International Medical Group launched the PTOgo is a first-of-its-kind travel medical insurance product for employers and employees. This insurance provides accident and sickness coverage for international trips taken during paid time off.
Additionally, AIA Group Limited (China) offers life insurance, medical insurance, critical illness insurance, accident protection insurance, disability protection insurance, and savings and investment plans to individuals. In February 2022, AIA Group Limited (China) established a pan-Asian health InsurTech company, namely "Amplify Health." The vision of Amplify Health's business is to spread digital health technology and integrated solutions to enhance the health and wellness outcomes of patients and communities in Asia.
Key Companies in the health insurance market includes
- International Medical Group, Inc. (IMG)
- AIA Group Limited (China)
- Allianz SE (Germany)
- Aviva Plc (UK)
- Berkshire Hathaway Inc. (US)
- Cigna (US)
- United Health Group (US)
- Humana (US)
- Bupa (UK)
- Kaiser Foundation (US), among others
Health Insurance Industry Developments
June 2022:Allianz (Germany) subsidiary Bajaj Allianz launched the health insurance " Health Care". This insurance includes emergency treatment available for domestic and international usage.
October 2021:United Health Group (US) launched the virtual-first health plan. This plan provides people with 24/7 access to a dedicated care team and quality care at a lower cost.
April 2019:Aviva plc (UK) launched the private medical insurance service for corporate clients. It enables staff to access open recommendations to clinicians and medical specialists through their GP or the Aviva Digital GP app.
Health Insurance Market Segmentation
Health Insurance Demographic Outlook
- Minor
- Adult
- Senior Citizens
Health Insurance Type Outlook
- Health Maintenance Organizations (HMOs)
- Exclusive Provider Organizations (EPOs)
- Point-Of-Service (POS) Plans
- Preferred Provider Organizations
Health Insurance Period Outlook
- Lifetime Coverage
- Term Insurance
Health Insurance Service Provider Outlook
- Public
- Medicare
- Medicaid
- Private
- Primary Private Health Insurance
- Duplicate Private Health Insurance
- Complementary Private Health Insurance
- Supplementary Private Health Insurance
Health Insurance Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
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