By Favour Nnabugwu
The global health insurance market grew from USD 1465.8 billion in 2019 to USD1721 billion in 2020 and is forecast to reach USD 2021.62 billion by 2027.
Health insurance is referred to as insurance that covers medical expenses that arise due to illness. These medical expenses can be related to hospitalization costs, cost of medicines or doctor consultation fees. It offers flexibility in disease or ailment coverage.
For the estimation of overall risk of health and health system expenses, an insurer develops a regular finance structure like payroll tax or monthly premium, to provide money to pay for healthcare benefits that are specified in the insurance agreement. Health insurance policy is often included in employer benefit package as a means of enticing quality employees.
The global health insurance market is witnessing significant growth from recent years. This growth is attributed to the increasing geriatric population, high medical costs, government initiatives for developing reimbursement policies for surgical procedures, and the need for an efficient flow of processes without any inconvenience caused due to the payment process. The increased cost of healthcare services and the high prevalence of lifestyle diseases will propel the market growth.
The global health insurance market is expected to witness significant growth, owing to the mandatory provisions of health insurance to the public and private sector, and increasing prevalence of chronic diseases like cancer, diabetes, and cardiovascular diseases.
The factors restraining the market growth are the exclusion of various expensive medical treatments from the policy and increased cost of healthcare insurance products. The introduction of advanced and innovative technology in health settings will provide market growth opportunities.
The global health insurance market is driven by the growing prevalence of chronic diseases such as diabetes, cardiovascular diseases, renal disorders, cancer, among others, and has drastically increased the patient pool and rate of hospitalization.
This in turn increases the healthcare expenditure incurred by the patients, thereby increasing the demand for healthcare policies covering critical illnesses and treatments.
Additionally, mandates about health insurance of employees in different private and public sectors are further expected to fuel the market growth. Furthermore, the sudden outbreak and spread of the COVID-19 pandemic has made many health insurance policy provider companies expand coverage for the disease in healthcare policies, especially in the United States.
Also, Chinese healthcare insurance provider companies are now providing coverage for the after-effects of COVID-19 in their insurance plans as it has been identified that the disease causes long-term organ damages.
Moreover, the adoption of advanced techniques and treatment options in the healthcare industry is further expected to create lucrative opportunities for the market growth through 2026F.
The unhealthy lifestyle patterns of people have resulted in an increase in the number of people suffering from chronic illnesses and an increase in the number of road accidents, and healthcare costs such as high medication costs, among other things.The expansion of the global health insurance sector has been fueled by rising GDP in many countries.
Increased demand for health insurance has resulted from increasing costs of quality healthcare and medical services, especially in private hospitals.If a person does not have benefits, hospital care expenses are enough to deplete a person’s savings.
This necessitates the purchase of health insurance.
The global health insurance market is segmented into type of insurance provider, type of coverage, term of coverage, mode of purchase, end-users, company and region.
Based on type of insurance providers, the global health insurance market can be categorized into public, private, and standalone health insurers.
Among these, the public segment is expected to dominate the market since they provide affordable treatment options which do not include extra deductibles.Based on the term of coverage, the market can be grouped into lifetime and term.
Out of these, the lifetime segment is expected to dominate the market owing to the growing prevalence of chronic diseases.
In terms of region, the global health insurance market has been segmented into Asia-Pacific, North America, South America, Europe, and Middle East & Africa.Among these regions, Asia-Pacific is expected to witness significant growth in the overall health insurance market owing to the increasing healthcare expenditure and expensive health facilities in the region.
Additionally, increasing demand for health insurance policies, especially in countries like China and India, is expected to drive the market in highly populated countries over the coming years.
Major players operating in the global health insurance market include UnitedHealth Group, CVS Health, Anthem Inc., Cigna Corporation, Allianz Group, AXA Equitable Life Insurance Company, and others.
The companies are developing advanced technologies and launching new services to stay competitive in the market. Other competitive strategies include mergers & acquisitions and new service developments.