February 29, 2024

Health Insurance Market Propelled By Rising Healthcare Costs And Chronic Disease Burden

Health insurance provides coverage that helps people pay for medical care. It reduces individuals’ financial risks by allowing them to pay a small monthly fee rather than pay all health care costs entirely out-of-pocket. In recent times, the rise in healthcare costs and growing prevalence of chronic diseases like cancer, diabetes etc. have made health insurance an essential commodity. The global Health Insurance Market is estimated to be valued at US$ 2602 Mn in 2023 and is expected to exhibit a CAGR of 9.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Growth of private health insurance

One of the major trends driving growth of the global health insurance market is the rise in private health insurance due to rising healthcare costs. As governments around the world struggle to provide universal public healthcare, individuals and companies are increasingly purchasing private health plans. Better coverage and newer options offered by private insurers have boosted their appeal. This shift towards private insurance is expected to continue over the forecast period, aided by increasing healthcare spending globally and launch of more customized insurance products.

SWOT Analysis
Strength: Health insurance provides financial protection and peace of mind against high medical expenses. It allows access to quality healthcare services.

Weakness: Administrative costs associated with health insurance are high. Fraud and abuse in the health insurance system increases costs.

Opportunity: Growing aged population and rise in lifestyle diseases drive the demand for health insurance. Digitalization of services provides an opportunity for growth.

Threats: Economic slowdown could reduce spending on health insurance. Stringent regulations increase compliance burden.

Key Takeaways

The global health insurance market demand is expected to witness high growth. Rising healthcare costs and awareness about insurance necessitate health coverage. The market size is projected to reach US$ 2602 Mn by 2024, growing at a CAGR of 9.7% during the forecast period of 2023 to 2030.

Regional analysis: North America dominates the global market currently, due to favorable policies and high healthcare expenditure. However, Asia Pacific is expected to offer lucrative opportunities owing to a large patient pool and government initiatives to promote health insurance uptake in the region. Countries like China, India, and Japan are major markets in Asia Pacific.

Key players operating in the health insurance market are US Magnesium LLC., Dead Sea Magnesium Ltd., POSCO, RIMA Group, Solikamsk Magnesium Works OAO, Wenxi YinGuang Magnesium Industry (Group) Co., Ltd., Shanxi Wenxi Hongfu Magnesium Co., Ltd., Shanxi Wenxi Zhenxin Magnesium Co., Ltd., and Taiyuan Tongxiang Magnesium Co., Ltd. Growth strategies adopted by these players include product innovation and expanding presence in developing markets.

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