Health insurance provides coverage that pays for medical and surgical expenses for those insured who get sick or injured. It protects people against high medical bills as well as expenses which aren’t covered by other modes such as cash or government services. The rising costs of healthcare have led to an increased demand for health insurance as people can’t afford the high costs of treatments otherwise. With growing penetration of technology in healthcare through telemedicine, access to healthcare has increased while reducing costs for patients as well as insurers. Telemedicine refers to remote delivery of healthcare services through video calls and apps, allowing patients to consult doctors without having to visit hospitals or clinics.
The Global Health Insurance Market is estimated to be valued at US$2606.72 Mn in 2024 and is expected to exhibit a CAGR of 9.9% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Health Insurance are Aetna Inc., AIA Group Limited, Allianz, Assicurazioni Generali S.P.A., AVIVA, AXA, CIGNA, Ping an Insurance, and UnitedHealth Group Inc. The rising elderly population worldwide and increasing prevalence of chronic diseases are fueling demand for healthcare insurance. Additionally, favorable government policies to promote health insurance through schemes aimed at universal healthcare are creating new opportunities. Advancements in telemedicine technologies are enabling remote delivery of medical services and consultations through mobile apps and video, helping to reduce costs for insurers as well as patients while improving access to healthcare.
Market drivers:
The key drivers augmenting growth of the health insurance market include rising healthcare costs worldwide, growing burden of non-communicable diseases, and favorable government initiatives promoting health insurance schemes. High costs of medical treatments have boosted demand for health insurance as a means of risk protection and financial security against medical expenditures. Further, technological advancements in telemedicine are enabling improved access to healthcare through virtual consultations using mobile apps and video, helping to curb rising medical costs for insurers as well as patients while also widening coverage of health services. This is a major factor expected to drive continued adoption of digital health insurance plans in the coming years.
Current Challenges in Health Insurance Market
The health insurance market is facing many ongoing challenges. Rising healthcare costs have made it difficult for many people to afford health insurance plans. Insurers have responded by increasing premiums every year, but this makes insurance even less accessible. At the same time, more medical providers are not accepting various insurance plans due to low reimbursement rates. This limits choices for patients. Another issue is the lack of standardization and clarity in different policies. Many people are confused about what is covered in their plans and cannot compare policies easily. Insurance providers also struggle with higher costs incurred from chronic diseases, an aging population and costly new medical technologies. Fraudulent medical claims have also increased costs for insurers. Overall, making quality healthcare affordable for everyone remains a key long term challenge.
SWOT Analysis
Strength: Large customer base due to compulsory insurance policies in many countries. Established brands and distribution networks.
Weakness: Heavy regulatory compliance increases costs. Low profit margins due to rising medical inflation.
Opportunity: Growth in demand for supplemental private insurance. Emerging focus on wellness and preventive care plans.
Threats: Intense competition from new market entrants. Rising customer acquisition costs due to digital disruption.
Geographical Regions
North America accounts for over 35% of the global health insurance market value driven by the large private insurance sector in the United States. Europe is another major region with countries emphasizing universal healthcare. Asia Pacific is a fast growing region led by countries like India, China and Japan. Growing middle class populations and changing healthcare needs are driving insurance uptake in many Asia Pacific nations.
Fastest Growing Region
Asia Pacific region is expected to experience the fastest growth during the forecast period till 2031. Rapid economic development and rising incomes are enabling more people in the region to purchase health insurance policies. Furthermore, governments of emerging countries are also working towards expanding health insurance coverage to more sections of the population. This will substantially increase the insured population and spending on health insurance in Asia Pacific over the coming years.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
