Health Insurance Market worth over $3.9Tn by 2027
Published Date: September 22, 2021 Authors: Sumant Ugalmugle, Rupali Swain
Health Insurance Market size is set to surpass USD 3.9 trillion by 2027, according to a new research report by Global Market Insights Inc.
Increasing healthcare expenditures will stimulate the market growth during the forecast timeline. The rising number of cancer cases will add up the healthcare expenses by requiring surgical procedures. For instance, according to the American Cancer Society, in 2020 new cases of cancer were approximately 1,806,590 in the U.S. alone. Thus, rising number of cancer cases along with increasing geriatric population across the globe are few factors that will spur the adoption of various health insurance policies, thereby augmenting the market expansion. Moreover, the rising prevalence of chronic diseases coupled with increasing awareness among the population will boost the market progression.
Increasing government initiatives will foster the market value
Several government initiatives especially in developing countries provide health insurance policies to their citizens. For instance, in September 2018, the government of India launched the National Health Protection Scheme, through which coverage of up to USD 7,723 was provided to more than 100 million vulnerable families. This scheme increased health insurance penetration in India, from nearly 34% to 50%. Additionally, the insurance sector in India is in at the embryonic stage and such government initiatives will accelerate the industry growth of Health insurance.
Lack of awareness in developing economies may slow down the health insurance market revenue
Health insurance is not mandatory in most of the developing countries and hence, individuals are reluctant to buy insurance plans for themselves and their families. Thus, lack of awareness among the population has slowed down the industry expansion. Further, people believe that they will not gain anything in return while buying health insurance plans.
Benefits associated with public insurance for geriatric population will drive the segment growth
The public segment was valued at USD 1.7 trillion in 2020. The public insurance provides economic support to patients with low-income or low disposable income. Furthermore, public insurance plans aim for imparting great support to people with out-of-pocket expenditures. Availability of several governmental bodies in the countries such as U.S., Germany and India to help geriatric population will further significantly contribute to the segment expansion.
Easy reimbursement for hospitalization insurance claims will impel the segment progression
Hospitalization insurance captured 20.7% of the market share in 2020. Medical insurance companies collaborate with hospitals for smooth reimbursement on treatments, consulting, and expensive surgical procedures.
Benefits of health maintenance organization will fuel the industry value
The health maintenance organization (HMO) segment accounted for USD 1.1 trillion in 2020 led by the rising budget-conscious customers. Patients with no chronic condition opt for this scheme where primary care physicians help them in dialing minor health-related problems. In addition, good health and reduced hospitalization costs coupled with low healthcare expenditure are factors that is anticipated to influence the segment demand over coming years.
Browse key industry insights spread across 150 pages with 143 market data tables & 18 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 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” in detail along with the table of contents:
Growing proportion of senior citizens will propel the market revenue
The senior citizen segment will witness 3% growth rate through 2027. The majority of the geriatric population suffers from one or more types of chronic diseases. Also, mostly elderly people sometimes cannot afford expensive treatments due to their retirement plans. Therefore, the rising acceptance of health insurance by senior citizens for various medical treatments will foster the industry value.
Increasing preference for term insurance will augment the segment value
The term insurance segment crossed USD 1.8 trillion in 2020 owing to the lower initial cost of term insurance than permanent life insurance policies. It provides benefits to those families that face a budget constraint. Term insurance offers a high coverage level during a time of need. Therefore, people with low- and medium-income usually rely on term insurance policies and this will accelerate the industry revenue.
Rising geriatric population in the European region has enhanced the market growth
European health insurance market held for 29.6% of revenue share in 2020. The growing geriatric population in the region and high awareness regarding the availability of health insurance policies are predicted to drive the regional growth. For instance, according Europe World Health Organization (EWHO), around 70 million residents in Germany were insured under the statutory health insurance as of 2017. Such high number of health insurance coverage in the country is expected to significantly contribute to the market expansion. In addition, favorable senior citizen policies and regulatory landscape for health insurance will positively influence the industry progression.
Companies are focusing on expansion strategy to sustain the market competition
Prominent players operating in the market include Aetna, Anthem, Centene, Cigna, HCSC, Highmark Inc, Jubliee Holding Limited, Kaiser Permanente and United Healthcare. Major leaders adopt strategies such as geographic expansion as well as collaboration to sustain competition in the market.