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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), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2021 - 2027

  • Report ID: GMI3146
  • Published Date: Sep 2021
  • Report Format: PDF

Industry trends

Health Insurance Market size exceeded USD 2.8 trillion in 2020 and is anticipated to grow at a CAGR of over 4.6% between 2021 and 2027. Increasing chronic diseases among the population is one of the key factors driving the market growth. Also, growing healthcare costs and high medical inflation rates are estimated to stimulate the market expansion. Furthermore, growing government initiative in middle and lower economic countries is another favouring factor that is fostering the market progression.
 

Health Insurance Market Overview

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During the COVID-19 outbreak, health insurance gained momentum due to the increase in the adoption of health insurance. The COVID-19 pandemic affected all business sectors across the globe, but it placed the industry in the spotlight. During the initial days of the pandemic, havoc was generated among people whether the existing insurance plan can cover coronavirus infection or not. Many governments launched different health insurance plans and laws to provide relief to their citizens from the pandemic. Also, the pandemic changed the mindset of the people regarding medical & health insurance policies. People realized the importance of health insurance and its benefits. Additionally, the market is projected to grow exponentially during the pandemic owing to the rising awareness among people and the increasing spread of coronavirus infection around the world.
 

Rising geriatric population will spur the health insurance market value

The rising geriatric population in developing and developed countries is one of the fundamental factors influencing the industry growth of health insurance. The majority of the geriatric population suffers from single or multiple chronic disorders and they are susceptible to other illnesses and diseases. Also, people of the age group 65 and above require constant monitoring and medical attention. The geriatric population falls under the underproductive section of the population and they sometimes cannot afford extended and expensive medical care. Therefore, medical insurance with several policies might cater a positive augment on the industry expansion.
 

Longer time for reimbursement claims will restrict the health insurance market demand

Longer time for reimbursement claims might restrict the industry progression of health insurance. Patients sometimes find it difficult to get the claim at the desired time. Also, insurance companies reject or delay claim when it is raised too late by the payer. In addition, health insurance policies come along with stringent regulations such as a strict timeline in filing the claim.
 

Rising preference of private insurance providers will fuel the segment growth

The private segment in the health insurance market was valued at around USD 1.1 trillion in 2020 led by the growing demand for private insurance policies. Private insurance policies provide more facilities to families against unexpected or accidental medical conditions. Moreover, private insurance providers have different types of policies according to the need of the person. Therefore, people opting for private insurance have the freedom to choose doctors and services.
 

Growing government initiatives regarding medical insurance will accelerate market revenue

Health Insurance Market Size

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The health insurance market for medical insurance segment accounted for USD 478.4 billion in 2020 impelled by the rising awareness among the population regarding health insurance. In developing countries, governments have launched initiatives regarding women's health. Additionally, certain medical policies provide cashless claim benefits that will further propel the industry demand.
 

High demand for preferred provider organizations will stimulate the market growth

The preferred provider organization (PPO) segment in the health insurance market will witness 3.8% growth rate through 2027. PPOs facilitate well-managed healthcare plans for their patients, and they offer more flexibility in their plans. Patients can choose care providers, doctors, or hospitals from the pre-approved list by the company. This will increase the acceptance rate, thereby supplementing the segment expansion. Furthermore, in the PPO plan, less paperwork is required that might further foster the industry value of health insurance.
 

Increasing prevalence of lifestyle diseases among adults will spur the market progression

The adult segment in the health insurance market is poised to expand at more than 5% CAGR till 2027. The high prevalence of lifestyle diseases such as obesity, diabetes, cardiac diseases, and others in the adult population has increased the health risk in the future. Therefore, the adult population is more susceptible to chronic diseases and might require long-term medical attention. To overcome increasing healthcare expenditure, adults are adopting medical insurance plans to avoid financial emergencies in the future and these factors will boost the industry revenue.
 

High preference for life insurance among the population will fuel the market expansion

The life insurance segment is expected to reach USD 1.4 trillion by 2027 due to the advantages of life insurance plans such as guaranteed death benefits and permanent coverage. Also, life insurance plans are advantages to working professionals in saving some amount from income tax. In addition, life insurance provides financial support during trauma crises and such factors might accelerate the industry size of health insurance during the forecast timeframe.
 

High healthcare expenditure in North America will enhance the regional growth

Global Health Insurance Market

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North America health insurance market size was USD 964 billion in 2020 driven by the high healthcare expenditure coupled with high GDP. According to the Centers for Medicare & Medicaid Services of the U.S., in 2019, U.S. health care spending reached USD 3.81 trillion. It was observed that spending per person in healthcare was USD 11,582.
 

Growth strategies of market players are focused on increasing the customer base

Some of the prominent companies functioning in the health insurance market are Aetna, Anthem, Centene, Cigna, HCSC, Highmark Inc, Jubliee Holding Limited, Kaiser Permanente and United Healthcare. These industry leaders 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 market revenues.
 

The health insurance market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue in USD from 2016 to 2027, for the following segments:

Market, By Service Provider

  • Private
  • Public

Market, By Type

  • Hospitalization Insurance
  • Critical Illness Insurance
  • Income Protection Insurance
  • Medical Insurance

Market, By Network Provider

  • Health Maintenance Organization [HMO]
  • Preferred Provider Organization [PPO]
  • Exclusive Provider Organization [EPO]
  • Others

Market, By Age-group

  • Minors
  • Adults
  • Senior Citizens

Market, By Time Period

  • Life Insurance
  • Term Insurance

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Italy
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
  • Latin America
    • Brazil
    • Mexico
  • Middle East and Africa
    • South Africa
    • Saudi Arabia
    • UAE

 

Authors: Sumant Ugalmugle, Rupali Swain

Frequently Asked Questions (FAQ) :

Market size of health insurance had exceeded USD 2.8 trillion in 2020 and will witness a CAGR of over 4.6% from 2021 to 2027.

Medical insurance market had accounted for USD 478.4 billion valuation in 2020 owing to the rising awareness among population regarding health insurance.

North America market size had surpassed USD 964 billion in 2020 owing to the increasing healthcare expenditure coupled with high GDP in the region.

Life insurance market will record a valuation of over USD 1.4 trillion by 2027 on account of the advantages of life insurance plans such as guaranteed death benefits and permanent coverage.

Health insurance market had generated over USD 1.1 trillion in 2020 from private providers segment as these services offer more facilities to families against unexpected or accidental medical conditions.

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Premium Report Details

  • Base Year: 2020
  • Companies covered: 10
  • Tables & Figures: 161
  • Countries covered: 18
  • Pages: 150

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