Health Insurance Market

SKU: DMHCIT1067 | Last Updated On: Dec 27 2022 | Available Formats

>Health Insurance Market Expected to reach a high CAGR of 4.2% By 2029:

Health Insurance Market is segmented By Insurance Network (Health maintenance organizations (HMOs), Exclusive provider organizations (EPOs), Point-of-service (POS) Plans), By Coverage (Lifetime, Term Insurance), By Distribution Channel (Individual agents, Corporate agents, Direct Marketing), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029

Health insurance Market Size, Share, and Growth Rate Analysis

Health Insurance Market size was valued at around US$ YY million in 2021 and is estimated to reach US$ YY million by 2029, growing at a CAGR of 4.2% during the forecast period (2022-2029). Healthcare Insurance is defined as the coverage that provides for the payments of benefits due to sickness or injury. It includes insurance for medical expense, disability to accidental death, and dismemberment". The insurance company either fully pays these costs that occurred during the treatment of the patient in advance or by the indirect method in which the patient needs to pay the complete fees. Then the company reimburses based on their terms and conditions. The major advantage of taking health insurance involves coverage for critical illnesses and tax benefits.

Health insurance market study analysis offers an in-depth outlook on the market containing quantitative and qualitative data. It gives an outlook and forecast of the global market based on market segmentation. It also provides global health insurance market size, and growth, along with the latest trends, opportunities, and forecast till 2029 for the global market with esteem to major countries such as the United States, Canada, Brazil, Germany, Italy, Spain, United Kingdom, Russia, European countries, United Arab Emirates, Saudi Arabia, South Africa, Japan, China, India, South Korea, Australia, and rest of the countries over the globe.

Among all regions, the North American region is expected to hold the largest share of the global market over the forecast period. The health insurance market in the United States and Canada produces the utmost share. Whereas the European health insurance market is projected to continue its presence globally during the period of 2022- 2029.

Health Insurance Market Report Scope

Metrics

Details

Market CAGR

4.2%

Segments Covered

By Provider, By Coverage, By Plan Type, By Insurance Network, By Distribution Channel, and By Region

Report Insights Covered

Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights.

Fastest Growing Region

Asia Pacific

Largest Market Share 

North America

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Health insurance Market Growth Dynamics

The improving GDPs of several nations across the globe have favored the growth of the global health insurance market in recent years. The health insurance market has benefited from rising per capita incomes, the emergence of the middle class, and a growing number of people with a relatively high incomes. Supportive government policies and healthcare insurance programs/ schemes boost the global healthcare insurance market.

Technological advancements in digital solutions to reduce incorrect and fraudulent claims in health insurance are expected to drive market growth.

According to the Asian Development Bank Report, 2021, economies such as the Republic of Korea and Taipei, China, have advanced high levels of digital maturity and have already invested in digital health strategies, which have matured into a robust data-use culture among the actors in their health system, for roughly ten years. Furthermore, these economies have established clear regulatory frameworks that govern data interchange, data security, and data privacy, among other things. For instance, the Republic of Korea is an excellent illustration of how artificial intelligence (AI) can aid in the decrease of false and fraudulent claims. The Republic of Korea's initial focus has been on enhancing medical care with AI algorithms, and it is already in use for automatic claims processing inside its semiautonomous claims review agency, the Health Insurance Review and Assessment Service (HIRA). Smart audit algorithms enable the accurate detection of only inaccurate claims. This is normally done through a multistage system. In the first step, all applications submitted are reviewed to see if they are correct, and uncommon claims are excluded. The system then uses artificial intelligence to find correlations between odd claims, which aids in determining the possibility of successful intervention; the system learns with each new application. A noteworthy conclusion for other countries is that the Republic of Korea established the central Health Insurance Database many years ago. The availability of "Big Data" enabled the development of intelligent algorithms and the successful training of systems with appropriate data. Thus, from the above factors, the market is expected to drive in the forecast period.

Lack of awareness of health insurance is expected to hamper the market growth.

According to a United Nations report, almost 364 million people in India are considered poor. This accounts for almost 28% of the Indian population. This segment of society is dealing with more pressing challenges, such as a lack of food and cleanliness. As a result, spending money on health insurance is unlikely to be high on their priority list. Moreover, one of the most widespread misunderstandings among people about purchasing health insurance is that healthy people do not require it, and health insurance companies reject most claims; the lack of healthcare professionals to educate people regarding health insurance is also the other factor to hamper the market growth.

Health insurance Market COVID-19 Impact Analysis

The COVID-19 epidemic had a significant impact on the health insurance industry. Because the vast majority of non-elderly households in the US rely on employer-sponsored insurance (ESI) to pay for health care, every economic shock that removes jobs also destroys access to health care. One such shock was the COVID-19 crisis, which caused a near-complete closure of large parts of the US economy in March and April. While job growth increased significantly in May and June and to a decreased in July, the overall employment level remained historically low compared to pre-COVID levels. For instance, between 2015 and 2019, around 2.8 million workers gained access to ESI each month, while 2.7 million workers approx. lost access, leading to a net increase in ESI coverage of more than 100,000 workers each month. In contrast, extreme churn after February 2020 has led to very large losses in ESI coverage. New hiring in March and April led to 2.4 million workers gaining ESI coverage, but historically large layoffs led to 5.6 million workers losing coverage each month.

Additionally, according to the best indicator of net employment change, around 6.2 million workers have lost access to health insurance which they previously obtained through their employer since the COVID-19 shock to the economy. In contrast, Medicaid is likely the dominant alternative source of coverage when people lost ESI in the COVID-19 shock. Medicaid rolls have likely expanded by more than 4 million since the COVID-19 shock began. Thus, from the above factors, the market got affected. However, the situation is expected to improve gradually in the forecast period.

Health insurance Market Segment Analysis

Private segment is expected to hold the largest market share in health insurance

The private segment accounted for the largest market share in 2021. The segment benefits because of faster access, family coverage, mental health coverage, access to private hospitals, specialized drugs and treatments, online appointments, tax benefits, and freedom of choice. For instance, insurance plans frequently include mental health coverage, which provides access to private services and therapies. Mental health was already a major issue before the epidemic, but it appears to have blossomed in its aftermath. According to Kooth's research, 44% of managers' mental health deteriorated due to the pandemic, and 56% believe their staff suffered similarly. As a result, including mental health coverage is a big benefit of having a private health insurance plan and would even cut overall expenses if the patient is already paying for any private mental health services or prescriptions. Thus, from the above factors, the market segment accounted for the largest market share in the forecast period.

Health insurance Market Geographical Analysis

North America region holds the largest market share in the global health insurance

North America accounted for the largest market share in 2021. The increasing number of insurance companies that provide health and life insurance and the high adoption of insurance in the region are the factors driving the market in the forecast period. For instance, according to the United States Census Bureau, in 2020, 91.4 percent of persons had health insurance coverage for all or part of the year. Private health insurance coverage remained more prevalent than public coverage in 2020, with 66.5 percent versus 34.8 percent, respectively. Employment-based insurance was the most common type of health insurance coverage, covering 54.4 % of the population for some or all of the calendar year, followed by Medicare (18.4 %), Medicaid (17.8 %), direct-purchase coverage (10.5 %), TRICARE (2.8 %), and VA or Civilian Health and Medical Program of the Department of Veterans Affairs (CHAMPVA) coverage (0.9 %).

Additionally, in 2022, more than 28 million people will be enrolled in a Medicare Advantage plan, accounting for over half of the eligible Medicare population (48%) and $427 billion (or 55%) of total federal Medicare spending (net of premiums). Furthermore, Molina Healthcare Inc. and Cigna Corporation signed an acquisition agreement on April 22, 2021, under which Molina Healthcare Inc purchased Cigna's Texas Medicaid and Medicare-Medicaid Plan (MMP). Therefore, there is high adoption of health insurance in the region. Thus, from the above factors, the North American region accounted for the largest market share in the forecast period.      

Health insurance Market Competitive Landscape

Major key players in the health insurance are Aetna Inc. (CVS Health Corporation), AIA Group Limited, Allianz SE, Aviva Plc, Berkshire Hathaway Inc., Cigna Corporation, International Medical Group Inc. (Sirius International Insurance Group Ltd.), Prudential Plc, United Health Group Inc., Zurich Insurance Group AG.

On April 21, 2021, Cigna Corporation collaborated with Oscar Health Inc and announced the launch of Cigna + Oscar health insurance, intending to provide affordable coverage for small businesses in Connecticut. Employees who are covered by the plan will have access to low-cost prescription coverage, 24/7, no-cost virtual doctor visits, and behavioral health support.

Aviva Plc:

Overview:

Aviva plc is a British multinational insurance company headquartered in London, England. It has around 18 million customers across its core markets of the United Kingdom, Ireland and Canada. Aviva is the largest general insurer in the United Kingdom and a leading life and pension, provider. Aviva is also the second-largest general insurer in Canada. Aviva also focuses on the growth markets of China and South East Asia through investments and JV’s with other firms. Moreover, its main activities are long-term savings, fund management and general insurance. The group has 49,000 employees serving 30 million customers worldwide.

­Product Portfolio:

The company covers the costs of private healthcare for the treatment of an acute condition. When necessary, the patient receives private professional therapies in comfortable circumstances, whether overnight care, outpatient treatment, diagnostic testing, scans, or aftercare.

  • Acute conditions
  • Access to 100s of hospitals
  • Cancer care cover
  • Hospital charges and specialist fees
  • Outpatient consultations and treatment

The global health insurance report would provide an access to an approx. 45+market data table, 40+figures and 180pages.

Frequently Asked Questions

What is the Projected CAGR value of the Health Insurance Market?

Health Insurance Market is expected to grow at a CAGR of 4.2% during the forecasting period 2022-2029.

Which region controlled the global market during 2022-2029?

North America region Controls the Health Insurance Market during 2022-2029.

Which is the fastest growing region in the Health Insurance Market?

Among all regions, Asia Pacific is the fastest growing market share during the forecast period.

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