Health Insurance Market Size By Service Provider (Private, Public), By Type (Hospitalization Insurance, Critical Illness Insurance, Income Protection Insurance, Medical Insurance), By Network Provider (Health Maintenance Organization [HMO], Preferred Provider Organization [PPO], Exclusive Provider Organization [EPO]), By Age-group (Minors, Adults, Senior Citizens), By Time Period (Life Insurance, Term Insurance), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2019 - 2025

Published Date: May 2019  |  Report ID: GMI3146  |  Authors: Sumant Ugalmugale

Report Format: PDF   |   Pages: 210   |   Base Year: 2018




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Health Insurance Market Size was valued at USD 1.4 trillion in 2018 and is expected to witness 4.2% CAGR from 2019 to 2025.
 

U.S. Health Insurance Market Size, By Service Provider, 2018 & 2025 (USD Billion)
 

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Increasing gross domestic product (GDP) is expected to drive health insurance market growth during analysis period. According to Trading Economics in the U.S. GDP increased at rate of 3.2% in first quarter of 2019. Thus, rise in the GDP and increase in the healthcare expenditure proves beneficial for industry growth as people can spend sufficiently on their healthcare expenses. Majority of healthcare disbursement accounts to expenses gathered from medical policies. Aforementioned factors are projected to drive health insurance industry growth.
 

Increasing geriatric population is one of the major factors driving business growth. Both developed and developing countries have huge geriatric population. Majority of geriatric population is susceptible to chronic conditions. Also, people in the age group of 65 years and above suffering from diseases may require continuous critical monitoring and surgical procedures. Since the geriatric population comes under unproductive portion of population, they cannot afford expensive surgical procedures and long hospital stays. Hence, availability of several insurance policies renders positive impact on business growth. However, stringent regulatory scenario may hamper health insurance industry growth to some extent.
 

Health Insurance Market Report Coverage
Report Coverage Details
Base Year: 2018
Historical Data for: 2014 to 2018 Forecast Period: 2019 to 2025
Pages: 210 Tables, Charts & Figures: 148
Geographies covered (18): U.S., Canada, Germany, UK, France, Italy, Spain, Russia, Japan, China, India, South Korea, Australia, Brazil, Mexico, Saudi Arabia, South Africa, UAE
Segments covered: Service Provider, Type, Network Provider, Age-group, Time Period and Region
Companies covered (10): Aetna, Anthem Health Insurance, Blue Cross Blue Shield Companies, Cigna Corporation, HCSC, Highmark, Humana, Kaiser Permanente, Wellcare, United Healthcare,

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Health Insurance Market, By Service Provider

Private segment was valued around USD 530 billion in 2018. Significant segment revenue size can be associated with increasing demand for private insurance policies. These policies protect families against unexpected medical issues. Moreover, private insurance also gives control over the choice of healthcare services. People opting for private insurance can now choose their services and doctors. Above mentioned factors boosts segmental growth.
 

Public segment is expected to witness over 3% growth throughout the analysis timeframe. Preference for public insurance is growing as it proves to be cost-effective. Additionally, public policies sometimes help the patients with out-of-pocket expenditures that propels its demand thereby, augmenting segmental growth.
 

Health Insurance Market, By Type

Income protection insurance segment is projected to grow more than 3% from 2019 to 2025. Income protection insurance provides benefits such as childcare benefits, overseas assistance, chronic injury or trauma benefits and elective surgery. Above mentioned benefits increase customer preference. Furthermore, income protection insurance also covers rehabilitation expenses that propels its adoption.
 

Medical insurance segment was valued around USD 235 billion in 2018. Significant revenue size is associated with rising adoption in developing economies. Government in developing countries has drafted certain initiatives regarding women health. For instance, specific policies developed for women covers reimbursement for several life-threatening diseases such as cervical cancer. Moreover, several medical policies also provide cashless claim benefits that enhances business growth.
 

Germany Health Insurance Market Size, By Type, 2018 (USD Billion)
Germany Health Insurance Market Size, By Type, 2018 (USD Billion)

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Health Insurance Market, By Network Provider

Health maintenance organization (HMO) segment was valued around USD 555 billion in 2018. HMOs prove to be an effective option for budget conscious customers. Also, patients will have a primary care physician that can help them in dealing with minor health related problems. This reduces visits to hospitals and subsequently reduces hospitalization costs such factors are expected to foster segment growth over coming years.
 

Preferred provider organization (PPO) segment will grow over 3% throughout the forecast timeframe. PPOs provide well-managed healthcare plans that offer more flexibility to patients. Patients are allowed to choose doctors and care providers from pre-approved list. Also, less paper work is required for PPO plans that further escalates its preference and boosts industry growth.
 

Health Insurance Market, By Age-group

Minors segment was valued around USD 330 billion in 2018. Minors segment includes population in the age group of 0-18 years. Health insurance providers develop special policies for children. Some of these child health insurance policies are available at lower premium and includes additional perks such as cashless hospitalization that elevates its adoption and should favour segment growth.
 

Adults segment will grow more than 4.5% throughout the forecast timeframe. Prevalence of lifestyle diseases is high in adult population that can increase health risk in future. Thus, adult population is more susceptible to cardiac and other endocrine diseases that requires hospitalization. Such factors are expected to favour industry growth over the coming years. To control healthcare expenditure, adults usually adopt life insurance plans to avoid financial crisis in case of medical emergency that further boosts segmental growth.
 

Health Insurance Market, By Time Period

Life insurance segment was valued around USD 490 billion in 2018. Advantages associated with life insurance plans include permanent coverage and guaranteed death benefit. Along with these advantages, investing in life insurance also helps working professionals to save some amount of income tax. Investing in life insurance not only provides financial support during trauma cases but also proves to be a better option for working professionals to grow tax-deferred that boosts its adoption.
 

Term insurance segment will grow over 4% throughout the forecast timeframe. Term insurance has lower initial cost in comparison to permanent life insurance policies. It is a good choice for families that face budget constraint. Term insurance provides high coverage level at appropriate time and only when required. This type of insurance is designed for needs that will disappear with time. Therefore, to save on costs, people usually rely on term insurance policies that should foster segmental growth.
 

Health Insurance Market, By Region

North America health insurance market was valued more than USD 470 billion in 2018. Regional growth can be attributed to increasing awareness regarding the health insurance policies coupled with high GDP. Moreover, availability of leading policy providers such as Medicare in the U.S. should trigger the business growth in forthcoming years. These medical insurance providers formulate health insurance policies that offer maximum coverage for several diseases that should boost industry growth.
 

Asia Pacific health insurance market will witness over 4.5% growth over the forecast period owing to growing prevalence of chronic diseases. This scenario proves beneficial for industry growth as it increases the demand for healthcare policies for appropriate reimbursement of healthcare services. Moreover, availability of cost-effective term insurance plans provided by national policy providers are highly preferred in developing countries of Asia Pacific region that is expected to foster business growth.
 

Asia Pacific Health Insurance Market Size, By Country, 2025 (USD Billion)
Asia Pacific Health Insurance Market Size, By Country, 2025 (USD Billion)

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Competitive Market Share

Some of the prominent industry participants include Anthem Health Insurance, Aetna, Blue Cross Blue Shield Companies, Cigna, Highmark, HCSC, Humana, Kaiser Permanente, Wellcare and United Healthcare. These industry players implement several strategic initiatives that help them in gaining potential market share. Moreover, approval from regulatory authorities to collaborate with major hospitals will increase company revenues. For instance, in September 2018, Cigna Corporation received approval from IRDAI to collaborate with Manipal Group. This partnership will increase sales of health policies.
 

Health Insurance Industry Background  

Health insurance industry can be traced back to late 1980’s. First insurance product Mediclaim was launched in 1986 that included reimbursement for hospital bills. Since then, several private insurance providing companies started entering the market. After advancements in treatment; new procedures were introduced. These new procedures were included in the policies and continuous amendments were made. Later in 2001, Insurance Regulatory and Development Authority (IRDA) was introduced. It constructed certain laws that allowed insurance providers to offer cashless claims on their products. This proved beneficial for the industry growth as it increased the demand for cashless insurance claims. Furthermore, advancements in healthcare IT proves to be one of the significant factors that has revolutionized health insurance industry. Recently developed healthcare revenue cycle management software have critical role in health insurance industry as they have facilitated the health insurance process by minimizing human errors. Therefore, with further advancements in healthcare IT, health insurance industry will experience numerous growth opportunities.
 


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