Global Health Insurance Market Outlook to 2028

Market Overview:

The escalating costs associated with medical treatments and an alarming rise in accident rates have prompted a substantial global demand for health insurance coverage. The global health insurance landscape is intricate by the factors contributing to the escalation of medical billing prices, including the modernization of medical technologies, increasing pharmaceutical costs, and the growing demand for specialized healthcare services. North America, spearheaded by the United States, remains the market leader, accounting for over 50% of the global health insurance revenue. Additionally, the proliferation of private health insurance offerings is evident in the fact that nearly 67% of the U.S. population relies on such coverage.

Europe follows suit, with countries like the United Kingdom, Germany, and France contributing significantly to the market. In Europe, health insurance penetration rates vary, with countries like Switzerland boasting levels exceeding 90%. The Asia-Pacific region, fueled by burgeoning economies and a growing middle class, showcases remarkable potential. China, for instance, has witnessed rapid growth, with its health insurance market expanding by over 20% annually.

Emerging economies in Latin America and the Middle East are also stepping up their health insurance game. In Latin America, Brazil stands out, displaying steady growth and a focus on innovative digital solutions.

The Global health insurance market is expected to grow with a CAGR of ~6% from 2022 to 2028. During the past years from 2017-2022 the market was growing at a CAGR of ~7% due to impact of Covid 19.

The ecosystem of the Global Healthcare Insurance market is a complex and interconnected network involving various stakeholders that collectively ensure the provision of financial protection and access to healthcare services for individuals and families. At its core, this ecosystem encompasses insurance providers, policyholders, healthcare providers, governments, and regulatory bodies.

Insurance providers play a pivotal role by offering a range of health insurance policies tailored to diverse needs, from basic coverage to comprehensive plans. They leverage innovative technologies and data analytics to assess risk, determine premiums, and streamline claims processing. Policyholders, on the other hand, seek insurance coverage to safeguard against the escalating costs of medical treatments and unforeseen health-related expenses.

Healthcare providers, including hospitals, clinics, and medical practitioners, are integral to this ecosystem as they deliver medical services to insured individuals. They collaborate with insurance companies to ensure timely reimbursements and seamless coordination of care. Governments and regulatory bodies oversee the industry by enforcing standards, promoting fair practices, and implementing policies that encourage insurance coverage and healthcare affordability.

Global Health insurance Market Analysis:

• The Global Health insurance market grew at a CAGR of ~7% between 2017-2022. US is the largest country market with the maximum insurances sales in comparison to the other part of the world.
• Increase in the frequency of accidents and rising diseases in comman people are responsible for the growth of the market of health insurance. Also surging awareness for health insurances as well as government initiatives are propelling the growth.
• To provide relief to patients affected by the coronavirus, many countries implemented a wide array of health insurance policies and laws to provide assistance to their citizens. Thus, the pandemic also changed people's attitudes about medical and health insurance policies, resulted in increasing awareness, thus affected the makret growth positively.

Key Trends by Market Segment:

By Service Provider Type:  In the segment of service provider type, the market is divided into public provider and private provider sector.

The private provider segment has dominated the market in 2022. With the increasing number of private providers, offering innovative policies with all benefits has propelled the customers.

Private segment shows more growth due to low premium cost and compulsion of having basic medical insurance by many countries. In addition, the launch of new government schemes for the low or middle-income class is also expected to fuel growth in the market in the upcoming years.

By End User Application: The Global health insurance market is segmented by application into corporates, individuals and others. The individual segment has dominated the market in 2022.

The factors, which are responsible for the dominance is the shifting demographics have played a significant role in this trend. As populations age and become more diverse, individuals are seeking health insurance plans that cater to their unique needs and circumstances. This has prompted insurance providers to offer a wide array of plans that can be customized to individual preferences.

Secondly, heightened awareness of health and well-being has led more people to prioritize their healthcare needs. The individual segment allows consumers to have greater control over their coverage choices, enabling them to select plans that cover specific medical conditions, preventive care, and wellness programs.

By Geography: Regional Split by North America, Europe, Asia pacific, Latin America, and Middle east across the globe.

North America is the dominant region in the market in 2022. In North America, the United States, in particular, has a well-established private health insurance sector, supported by a complex healthcare infrastructure. The country's high healthcare expenditures are a testament to the significance of insurance coverage, contributing to the market's supremacy. Moreover, a considerable portion of the U.S. population relies on employer-sponsored health insurance, reinforcing the role of insurance companies in ensuring comprehensive coverage.

The U.S. healthcare landscape, characterized by a diverse range of services, specialists, and facilities, underscores the necessity for comprehensive health insurance plans. Insurance providers have adapted to cater to these intricate needs, fostering a competitive environment that encourages innovation and product diversification.

The North American population has higher disposable income levels and greater awareness of healthcare services amplify the demand for health insurance products,  coupled with a strong tradition of consumerism, drives individuals to seek comprehensive coverage, further fueling the market's growth.

Competitive Landscape:

There are about 15-20 major health insurance companies in the world with majority of them offering insurance. Major players are Cigna Corporation, AIA Insurance Group, United Health Group Inc., Allianz SE, Zurich Insurance Group Ltd.

The global health insurance market presents a dynamic and competitive landscape shaped by a multitude of factors. Established players like UnitedHealth Group, Anthem, and Aetna maintain their dominance through vast networks, diverse product portfolios, and strong financial backing.

Meanwhile, innovative technology-driven firms such as Oscar Health leverage data analytics and user-centric platforms to disrupt the market. Regional players like Bupa (UK) and AXA (France) focus on specialized offerings, tailoring plans to local healthcare systems. Government-sponsored entities like China's Ping An Healthcare and Japan's National Health Insurance also play pivotal roles.

Additionally, the rise of insurtech startups like Lemonade and Alan bring fresh approaches, utilizing digital channels for streamlined customer experiences. Mergers and acquisitions remain prevalent; CVS Health's acquisition of Aetna exemplifies the convergence of health insurance with retail pharmacy services. Amidst these trends, customer demand for customizable coverage, affordability, and telehealth services is reshaping market strategies. Regulatory environments and shifting healthcare paradigms further influence competitive dynamics. The global health insurance market, characterized by a mix of traditional giants, tech-driven entrants, and localized providers, continues to evolve in response to changing consumer needs and industry trends.

Recent Developments:

• Government entities such as institutions and cooperative banks play a vital role in improving the penetration of health products and services in rural areas by providing affordable insurance policies and facilitating the claim settlement process.
• In november 2019, the Competition of India approved the acquisition of the general insurance business of Bharti AXA General insurance ltd. Through this this the company will provide a diversified products for health and accident insurance coverage.
• Allianz care announced a partnership with ICE Insurance to improving the company’s position in Africa.

Future Outlook:

Global Health insurance market is expected to show increasing and is expected to grow at a CAGR of ~6% from 2022 to 2028 with Government initiatives for health facility and development are expected to enhance the connectivity within the globe.

• Healthcare costs have been rising globally due to advancements in medical technology, an aging population, and the prevalence of chronic diseases. As healthcare becomes more expensive, the demand for health insurance to cover these costs is likely to increase.
• Non-communicable diseases such as diabetes, cardiovascular diseases, and obesity are on the rise due to changing lifestyles. These conditions require ongoing medical care, making health insurance a necessity for managing long-term healthcare expenses.
• The global population is aging, with a larger proportion of elderly individuals than ever before. As people age, their healthcare needs tend to increase due to a higher likelihood of chronic diseases and medical conditions. This demographic shift places a greater demand on healthcare services and, subsequently, on health insurance plans that can cover the costs of these increased medical needs.
• The COVID-19 pandemic highlighted the need for comprehensive health coverage. The experience of the pandemic could lead to increased interest in health insurance for protection against future health crises.