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 (2021-2027).
The Health Insurance is a financial plan or a policy provided to cover medical expenses for beneficiary in any injury, disease, mental illness or physical disablement. These insurance policies are planned different for different demographic target market and for individuals, family, and small business. In North America the Affordable Care Act (ACA) established a marketplace to benefit millions of uninsured Americans with health insurance.
The Health Insurance market is largely driven by increasing prevalence of severe diseases such as cancer, cardiovascular diseases, diabetes, mental and physical abnormalities. Moreover, increased applications of high tech instrument and drug to treat the injuries and varied other medical treatments is apparently adds up as a higher costing in medical procedures. It makes it unaffordable for the ordinary people to manage healthcare expenses, therefore leading to a boom in health insurance market. Additionally, complimentary governmental policies and COVID-19 outbreak is influencing more people to opt for health insurance thus boosting the market growth during the forecast period (2021 to 2027).
The health insurance market is a vast market and dominated by brokers and agents. This can be attributed to the lack of knowledge among people about the varied policies and a need to understand the insurance plans before purchasing it. However, the direct sales segment is growing at a significant rate owing to numerous online portals which are making it easier for people willing to get insurance to learn about different plans and growing E-commerce market.
The medical insurance plans are anticipated to drive the health insurance market and is expected to continue its dominance throughout the forecast period of 2021 to 2027. This dominance may be accounted as the medical insurance provides coverage for all medical expenses. It provides surety of receiving best medical facilities without straining financially.
The Preferred Provider Organizations (PPOs) segment led the market by both value and volume and was accounted for over 25.0% of overall market shares in 2020. This can be credited to the dense network of PPOs and as they are the most common health plans benefiting people to choose from numerous doctors and hospitals.
The Individual end user type was anticipated to dominate the health insurance market in the year 2020. The supremacy is owing to the demand of individual insurance over a family or a small business. Individual insurance policies are easier and provide wide range of benefits thus driving the market segment.
Adults segment based on demographics is anticipated to dominated the market with about 59% of total market share. Factors such as worsening lifestyle leading to early diseases and increasing heart health risks owing to stress and obesity are driving the market growth.
Geographically, the North American region accounted for the largest market. The region is expected to maintain dominance due to the large no of insurance players in the market. Additionally, the ACA (Affordable Care Act) applied in the U.S. makes it mandatory for people to own a health insurance. Moreover, Asia Pacific region is witnessing the fastest growth during the forecast period. Factors such as, convenient governement policies and increasing healthcare expenses in both public and private sector are responsible for the market growth.
The impact of COVID-19 has greatly affected the market of the health insurance industry. The momentum for the health insurance market is rising drastically owing to the pandemic. Increase in number of people investing in health insurance are observed. People have understood the importance of the fact that health insurance is the only way to protect themself financially in this pandemic situation.
|The increasing number of individual and family insurances covering COVID-19 related expenses.
|The rising awareness among adults about health insurances
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