April 20, 2024

Health Insurance Market: Understanding Policy Dynamics and Innovations

Health Insurance Market

Health insurance provides financial security against high medical expenses resulting from hospitalization. It offers coverage for medical costs arising from illnesses, injuries and medical tests/checkups. The increasing premiums and out-of-pocket healthcare expenses have compelled individuals to opt for health insurance plans for financial protection. The global health insurance industry provides reimbursement of medical bills and administers health benefit programs for employers and individuals. The Global Health Insurance Market is estimated to be valued at US$2606.72 Mn in 2024 and is expected to exhibit a CAGR of 9.9% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Health Insurance are Aetna Inc., AIA Group Limited, Allianz, Assicurazioni Generali S.P.A., AVIVA, AXA, CIGNA, Ping an Insurance, and UnitedHealth Group Inc. The key opportunities in the market include rising demand for telemedicine and online medical consultations amid COVID-19, growth of medical tourism and expansion of supplementary insurance coverage. With growing healthcare costs, demand for health insurance is increasing globally with North America dominating the market currently followed by Asia Pacific and Europe.

Market drivers

Rising healthcare costs remain a key growth driver for the health insurance market. High costs of advanced medical facilities, diagnostic tests, surgical procedures and treatments have led to larger insurance claims. This has increased the need for adequate health insurance coverage amongst individuals. According to the Organization for Economic Co-operation and Development (OECD), healthcare costs in the US grew at a rate of 4.6% annually during 2005 to 2019, which is nearly twice the economic growth rate. Other major economies have also witnessed above-average inflation in healthcare inflation compared to general consumer price inflation. This has accelerated demand for health insurance globally.

PEST Analysis
Political: The political landscape surrounding the health insurance market is evolving with proposals for healthcare reforms. Changes in laws and regulations can increase the scope of coverage and influence the cost of premiums.

Economic: Economic growth and rising income levels are driving the demand for health insurance. A growing middle class is able to pay for medical insurance and access private healthcare. Rising healthcare costs put pressure on individuals to opt for medical cover.

Social: People are becoming increasingly health-conscious and prefer secure options to pay for medical expenses. Health awareness and lifestyle diseases have prioritized preventive healthcare. Social security benefits also influence the demand for private medical cover.

Technological: Technologies enable efficient claims processing and new premium payment options. Telemedicine services improve access to consultations while reducing costs. Technologies boost preventive care through remote monitoring devices and use of health data.

Geographical concentration of the health insurance market
The North American region accounts for the largest share of the global health insurance market in terms of value. The presence of well-established private healthcare providers and medical infrastructure has boosted health insurance penetration. High healthcare costs in the US are driving demand for insurance policies.

Fastest growing region in the health insurance market
The Asia Pacific region is expected to witness the fastest growth in the health insurance market during the forecast period. Rapidly developing healthcare infrastructure and economic growth in countries such as India and China are supporting the expansion of the medical cover. Rising incomes are increasing Spending on health and wellness. The young demographicFactors are increasing the demand in Asia Pacific.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it