Health Insurance Market size to exceed $1.5 Tn by 2025
Published Date: May 8, 2019 Authors: Sumant Ugalmugle
Health Insurance Market size is expected to cross USD 1.5 trillion by 2025; according to a new research report by Global Market Insights, Inc.
Rising healthcare expenditures will augment the market growth in coming years. People suffering from cancer and other chronic conditions may require surgical procedures that adds up to healthcare expenses. Increasing prevalence of chronic diseases coupled with rising healthcare expenditure is expected to boost the industry growth. Moreover, patients that cannot afford surgical procedures and advanced treatment options opt for health insurance plans.
Several government initiatives for providing people with effective health insurance policies in developing economies should foster the business growth. However, poor claim settlement track record system may create complications and restrict the industry growth.
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Private segment was valued over USD 530 billion in 2018. It provides economic support to patients receiving treatment from quaternary, tertiary and secondary healthcare institutions. Moreover, private insurance plans also aims for imparting greater flexibility to customer for choosing doctors and treatments.
Hospitalization insurance accounted for more than 20% revenue share in 2018. Insurance providers collaborate with major hospitals to provide reimbursement on expensive surgical procedures and advanced treatments. Introduction of special reimbursement policies by companies such as Cigna and Medicare for complete family health insurance having maximum coverage for diseases further boost the segment growth.
Browse key industry insights spread across 210 pages with 138 market data tables & 10 figures & charts from the report, “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 Demographics (Minors, Adults, Senior Citizens), By Time Period (Life Insurance, Term Insurance), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2019 – 2025” in detail along with the table of contents:
Preferred Provider Organization (PPO) held over USD 200 billion revenue in 2018. The growth is attributed to low cost of the insurance plans offered by PPO. PPOs allow easy access to benefits of the scheme and individuals are also assigned with primary healthcare professional that reduces hospital visits for minor health issues.
Health insurance market growth from senior citizens age groups will grow at 2% CAGR during 2019 to 2025. Since, most of elderly people are dependent, they usually cannot afford expensive treatments. Therefore, increasing adoption of cost-effective public healthcare plans providing reimbursement on various procedures for elderly people that elevates the business growth.
Life insurance market was valued more than USD 400 billion in 2018. Numerous benefits such as lower premium, rising cash values augments the segment growth. Life insurance offers different policies that are flexible in terms of policyholder’s needs. Moreover, investing in life insurance is an effective method of saving income tax that should positively impact on market demand.
North America health insurance market accounted more than 33% revenue share in 2018. Growing awareness regarding availability of health insurance policies having several benefits will drive the regional business growth. Furthermore, favorable regulatory landscape for health insurance companies in the U.S. positively influences industry growth.
Prominent industry players operating in health insurance market share include Aetna, Anthem Health Insurance, Blue Cross Blue Shield Companies, Cigna, Humana, HCSC, Highmark, Kaiser Permanente, Wellcare and United Healthcare. Major players adopt strategies such as geographic expansion as well as collaboration to sustain competition in the market.