Health Insurance Market is growing at the faster pace owing to the COVID-19 pandemic

The Global Health Insurance Market was valued at USD 1.8 trillion in 2020, and it is expected to reach USD 3.6 trillion by 2027, with a CAGR of 9.8%, during the forecast period.

Health Insurance is a scheme or policy held sometimes privately or by government which allows a financial coverage on whole or a part of the risk of a person sustaining medical expenditures. The health insurance platform offers a plan to individuals, families, and even small businesses to access health insurances. There are varied types of health insurance such as diseases insurance, medical insurance, critical illness insurance, and family floater health insurance. Individuals, families and small businesses are advised to purchase the insurance based on the requirements and considering the benefits.

The key factors driving the industry growth may include rising prevalence of chronic diseases such as diabetes, high or low blood pressure, HIV or AIDS, critical illness, cancer and even heart ailments. The health insurance policy also does cover the accident related expenses and aid in coverage for treatments for injuries caused by accidents. Moreover, the COVID-19 pandemic has apparently benefited the market growth in recent years. Health Insurance on general terms does consider COVID-19 illness and health damages caused by the same in the health plan. The pandemic has rapidly decreased the life expectancy rate and thus leading to awareness among people to purchase a health insurance. Apart from the pandemic the overall surge in awareness among rural areas is boosting the market growth. Additionally, enhancing claim management services is also a major factor, propelling the health insurance market during the forecast period.

Additionally, increasing usage of advanced high-tech products in healthcare industry to handle chronic diseases such as heart ailments and cancer is adding up a huge amount in treatment cost thus making it unaffordable for consumers. This factor increases the adoption of health insurance across the globe. Depending on the policy, the coverage of scheme may vary for numerous factors, including age group, diseases, government policies, time duration, and others.

However, there are some factors hampering the market growth, these factors may include lack of awareness and knowledge about the coverage include in health insurance policy and rapid increase in health insurance premium cost.

Global Health Insurance Market by Distribution Channel Outlook (Revenue, USD Million, 2021-2027)

  • Direct Sales
  • Brokers/Agents
  • Banks
  • Others

Global Health Insurance Market by Insurance Type Outlook (Revenue, USD Million, 2021-2027)

  • Diseases Insurance
  • Medical Insurance
  • Critical Illness Insurance
  • Family Floater Health Insurance

Global Health Insurance Market by Coverage Outlook (Revenue, USD Million, 2021-2027)

  • Point of Service (POS)
  • Health Maintenance Organizations (HMOs)
  • Exclusive Provider Organizations (EPOs) 
  • Preferred Provider Organizations (PPOs)

Global Health Insurance Market by End-User Type Outlook (Revenue, USD Million, 2021-2027)

  • Group
  • Individuals

Global Health Insurance Market by Age Group Outlook (Revenue, USD Million, 2021-2027)

  • Senior Citizens
  • Adults
  • Minors

Global Health Insurance Market by Provider Outlook (Revenue, USD Million, 2021-2027)

  • Private Providers
  • Public Providers

Global Health Insurance Market by Region Outlook (Revenue, USD Million, 2021-2027)

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

Health Insurance Market Key Findings:

  • Based on distribution channel, the market is segmented into direct sales, brokers/agents, banks, and others. Among which, the brokers and agents segment is anticipated to drive the market at the fastest rate.
  • On the basis of insurance type, the medical insurance segment is accounted to hold the largest market share.
  • Based on coverage, the market is dominated by the Preferred Provider Organizations (PPOs) segment owing to its popularity and the strong network coverage allowing the customers to choose from varied doctors and hospitals.
  • Based on end user, the Individuals end user type segment held the largest share of the market and is projected to continue its dominance during the forecast period.
  • On basis of age group, the Adult type of demographic segment is estimated to hold the large chunk of market.
  • Geographically, the North American region is anticipated to capture a significant portion of the global health insurance market during the forecast period. This is owing to the compulsion of having health insurance coverage for all as directed by Affordable Care Act (ACA).

Health Insurance Market Company Profiles and Competitive Intelligence

The key players operating in the health insurance market are:

  • Aetna Inc. (CVS Health Corporation)
  • AIA Group Limited
  • Allianz Care
  • Aviva Plc
  • AXA Equitable Life Insurance Company
  • Cigna Corporation
  • Ping An Insurance (Group) Company of China, Ltd.
  • UnitedHealth Group
  • Zurich Insurance Group
  • Berkshire Hathaway Inc.
  • Prudential plc
  • Nippon Life Insurance Company
  • Anthem Insurance Companies Inc
  • HCSC Group

Health Insurance Market Recent News:

  • In June 2021, AIA Group Limited has been approved by the China Banking and Insurance Regulatory Commission (CBIRC) for the establishment of their new business branch in Hubei province. This business expansion would benefit AIA Group to hold a grip over business in core of the country.
  • In November 2019, Allianz Care has successfully launched a fresh suite of private health care plans especially suitable for modern family. The company claims that these new policies would cover all the needs and challenges faced by the modern families.
  • In November 2018, CVS Health successfully closed its acquisition over Aetna worth of approximately USD 212 per share which adds up to USD 70 billion. This acquisition would combine Aetna’s insurance business with CVS’s pharmaceuticals creating a new health-care powerhouse. This merger would probably offer a much lowered healthcare costing.

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