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The health insurance market size is projected to increase by USD 994.17 billion at a CAGR of 6.92% between 2023 and 2028. The growth rate of the market depends on several factors, including the increasing demand due to growing healthcare awareness, the global rise in the aging population, and the increase in the prevalence of chronic diseases. Health insurance is a financial product that provides coverage for individuals' medical and healthcare expenses. Policyholders pay the insurer regularly, which provides financial protection against unforeseen medical bills. Hospital stays, surgeries, prescription drugs, and preventive care are common services covered by health insurance.
The report includes a comprehensive outlook on the Health Insurance Market, offering forecasts for the industry segmented by Service, which comprises public and private. Additionally, it categorizes Type into life insurance and term insurance and covers Regions, including North America, APAC, Europe, South America, and Middle East and Africa. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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Increasing demand due to growing healthcare awareness is the key factor driving market growth. Growing health and well-being awareness is a significant contributor to the global health insurance market, particularly in emerging countries such as India. As people become more aware of the possible monetary implications of healthcare, there is a greater need for comprehensive health insurance coverage. In emerging nations, where healthcare access may be limited and medical expenditures are rising, consumers are seeking health insurance solutions because they recognize the value of preventive care and financial protection against unforeseen health catastrophes.
Moreover, countries in Asia, Africa, and Latin America, for example, are experiencing an increase in health insurance acceptance as people recognize the importance of having coverage to assure access to quality treatment while protecting against the financial effects of medical bills. Thus, the above-mentioned factors are expected to increase the demand for health insurance, which will propel the growth of the global health insurance market during the forecast period.
Increasing demand due to growing focus on preventive health is the primary trend shaping market growth. The trend of insurers prioritizing preventative health measures represents a paradigm change in the global health insurance market towards proactive healthcare management. Insurers are recognizing the importance of preventative services in improving overall health outcomes and lowering long-term healthcare expenses. Wellness programs such as fitness incentives, dietary counseling, and mental health support, are increasingly becoming standard features of insurance policies.
In addition, health screenings and early detection activities are being promoted to discover any health issues before they worsen. Some insurers, for example, offer reduced premiums or greater coverage to policyholders who engage in regular physical activity or participate in wellness activities. This trend not only corresponds with the greater focus on holistic well-being but also positions insurers as partners in encouraging healthier lives among their subscribers. Thus, such factors are expected to fuel the growth of the global health insurance market during the forecast period
Escalating costs of healthcare services and medical treatments is a challenge that affects market growth. Rising healthcare expenses and medical treatments provide a substantial business issue for insurers. As medical costs continue to rise, insurers face the conundrum of maintaining cheap premiums for policyholders while being profitable. Advanced medical technologies, specialized therapies, and pharmaceutical developments, for example, all contribute to rising healthcare costs. Furthermore, the rising frequency of chronic diseases and the increased demand for high-quality healthcare services put insurers' financial viability under strain.
In addition, balancing the need to provide comprehensive coverage with the imperative to control costs necessitates the implementation of innovative solutions such as cost-sharing models, leveraging data analytics to optimize resource allocation, and exploring collaborative initiatives with healthcare providers to negotiate favorable pricing terms. Addressing this issue is critical for insurers to provide accessible and financially sustainable health insurance solutions to a varied and growing consumer base. Hence, such factors are expected to impede market growth during the forecast period.
The market share growth by the public segment will be significant during the forecast period. Increased government involvement in providing widespread healthcare access characterizes the market scenario for the growth of public organizations as leading service providers in the global health insurance market. Public health insurance programs, such as the UKs National Health Service (NHS) and Australias Medicare, play an important role. Governments around the world are developing public health efforts to meet the different healthcare requirements of their people.
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The public segment showed a gradual increase in the market share of USD 1,012.26 billion in 2018. Collaborations with commercial insurers, legislative frameworks, and investments in healthcare infrastructure all contribute to the expansion of public institutions. As governments emphasize universal health coverage, public health insurance is expected to remain a prominent player in the global market, contributing to overall improvements in health outcomes. This, in turn, will drive the adoption of the public segment as a service provider, which, in turn, is expected to drive the growth of the global health insurance market during the forecast period.
The rising acceptance of the interdependence of health and financial well-being drives the market environment for the rise of life insurance as a prominent coverage type in the global health insurance market. Integrated health and life insurance policies, which provide full coverage, are gaining popularity. Insurance companies such as Allianz are aligning their services to match consumers' changing demands, emphasizing the holistic benefits of combined health and life coverage. This trend is predicted to continue as people look for more comprehensive and adaptive insurance options for their overall well-being. Notably, this implies the increase in demand for the life insurance sub-segment as a leading coverage type, and this, in turn, is expected to drive market growth during the forecast period.
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North America is estimated to contribute 44% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The health insurance market in North America is expanding rapidly, owing to a variety of causes. Increasing healthcare expenses, increased awareness of the significance of health insurance, and an aging population all contribute to the regional market growth. Key firms, including UnitedHealth critical roles by providing a wide range of insurance products and services.
Furthermore, government initiatives and regulatory reforms also have an impact on the regional market, impacting the design and accessibility of health insurance programs. The evolving regional market scenario reflects a constant attempt to accommodate the population's changing healthcare needs, with a strong emphasis on comprehensive and easily available health coverage. Hence, such factors are expected to drive market growth in this region during the forecast period.
Health Insurance Market forecasts include the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their health insurance market growth and trends strategies.
Global Health Insurance Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The Health Insurance Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Health Insurance Market market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The health insurance market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028
Health Insurance Market Scope |
|
Report Coverage |
Details |
Page number |
152 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.92% |
Market Growth 2024-2028 |
USD 994.17 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.46 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 44% |
Key countries |
US, China, Japan, UK, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ACKO General Insurance Ltd., Aditya Birla Management Corp. Pvt. Ltd., Allianz Care, Bharti Enterprises Ltd., Centene Corp., CVS Health Corp., Elevance Health Inc., General Insurance Corp. of India Ltd., HDFC Bank Ltd., ICICI Lombard General Insurance Co. Ltd., Independence Health Group Inc., Indian Farmers Fertiliser Cooperative Ltd., Kotak Mahindra Bank Ltd., Life Insurance Corp. of India, Max Financial Services Ltd., Oscar Health Inc, Reliance General Insurance Co. Ltd., Star Health and Allied Insurance Co Ltd., The Cigna Group, and UnitedHealth Group Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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