July 12, 2024
Health Insurance Market

The rising popularity of online insurance plans is anticipated to open up the new avenue for Health Insurance Market

The Health Insurance Market is estimated to be valued at US$ 2,602.0 Mn or 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 Overview:
Health insurance provides coverage for medical and surgical expenses. It helps pay or reimburse healthcare costs for those who get sick or injured. The major products in the market include hospitalization insurance, medical insurance, critical illness insurance and others. Health insurance is purchased by individuals or through employers to reduce financial risks associated with medical expenses.

Market Dynamics:
Increasing healthcare costs is one of the major drivers of the health insurance market. Rising prices of medicines, diagnostics, treatments and hospital beds have increased the overall healthcare expenditure. According to data from the Organisation for Economic Co-operation and Development (OECD), healthcare spending in the U.S. grew 4.6% in 2020 to $4,132 (17.2% of GDP). Increasing awareness about health insurance and availability of varied options is also fueling the market growth. Governments across countries are promoting health insurance coverage for citizens through subsidiaries and benefits which is positively impacting the industry expansion.
Segment Analysis
The health insurance market can be segmented into medical insurance, critical illness insurance, and personal accident insurance. Medical insurance dominates the market, accounting for over 60% share due to its wide coverage of medical and hospitalization expenses. It covers costs associated with medical consulting, surgical procedures, and diagnosis tests, making it essential for every individual.

PEST Analysis
Political: Various governments worldwide are formulating policies and regulations to make health insurance affordable and ensure universal access to healthcare. For example, the US government enacted the Affordable Care Act to expand health insurance coverage.
Economic: Rising healthcare costs and increasing per capita income are driving demand for health insurance. Additionally, tax benefits on health insurance premiums encourage customers to purchase policies.
Social: Growing health awareness and longer life expectancies increase the need for financial protection. The risk of high out-of-pocket medical expenditures also motivates people to opt for health covers.
Technological: Digitization is allowing online purchase and servicing of policies through websites and mobile apps. It is making the process more convenient and transparent for customers.

Key Takeaways
The global Health Insurance Market Share is expected to witness high growth, exhibiting a CAGR of 9.7% over the forecast period, due to increasing healthcare costs and rising incidence of chronic and lifestyle diseases.

Regionally, Asia Pacific dominates the market and is projected to grow at the fastest pace during the forecast period. Rapid economic development, rising medical expenditure, increasing focus on preventive healthcare, and supportive government initiatives are fueling the region’s growth.

Key players operating in the health insurance market include Aetna Inc., AIA Group Limited, Allianz, Assicurazioni Generali S.P.A., AVIVA, AXA, CIGNA, Ping an Insurance, and UnitedHealth Group Inc., among others. Players are investing in advanced technologies to streamline operations and ensure hassle-free claim settlement processes. They are also launching new customized products to align with customers’ changing needs.

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