Healthcare Insurance Market (By Provider: Public and Private; Coverage Type: Term Insurance and Life-Time Coverage; Provider Type: Point of Service, Preferred Provider Organizations, Exclusive Provider Organizations, and Health Maintenance Organizations) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2021 – 2030


The global healthcare insurance market was estimated at USD 1,899 billion in 2021 and is expected to reach USD 3,948.7 billion by 2030, poised to grow at a compound annual growth rate (CAGR) of 7.6% during the forecast period 2021 to 2030.

Healthcare Insurance Market Size 2021 to 2030

Growth Factors

The global healthcare insurance market is primarily driven by various factors such as the rising prevalence of chronic diseases, high healthcare costs, increased disposable income, constant new product launches by the numerous players, rising awareness regarding health insurance, and improved services related to claim settlement. The rising prevalence of various chronic diseases and the associated costs of treatment is major factors that compel people to opt for healthcare insurance. The major diseases and health risks that are covered under healthcare insurance include road accidents, cancer, HIV, diabetes, and heart ailments to name a few. According to the International Agency for Research on Cancer, around 19.3 million new cancer cases and around 10 million cancer-related deaths were reported in the year 2020, across the globe. According to the World Health Organization, diabetes is a major cause of blindness, kidney failure, heart attacks, and strokes. According to the WHO, road accidents are the major cause of death among children and young adults, aged 5 years to 29 years. All these health risks are the major drivers of the healthcare insurance market.

The global healthcare insurance market is highly fragmented owing to the presence of a huge number of market players. Therefore, the various developmental strategies adopted by them such as mergers, acquisitions, and new product launches significantly impact the market as there are constant strategies undertaken by the players. The development of various treatments and drugs for curing chronic diseases such as cancer, diabetes, and cardiovascular ailments is expected to drive the healthcare insurance market. The various latest and innovative treatments involve high cost and hence people who are aware of such latest treatments tend to buy a healthcare insurance policy.

The recent outbreak and rapid spread of the COVID-19 virus in 2020 had positively impacted the sales of the health insurance policies. According to Policybazaar.com, an online portal for all types of insurance products, it sold one million insurance policies between April and December in 2020. The COVID-19 pandemic had made people realize the importance of having a health insurance policy, as the treatment costs of COVID-19 were extremely high in the private hospitals in India.

Provider Insights

Based on the provider, the public segment accounted 56% revenue share in 2020 and is estimated to sustain its dominance during the forecast period. This is attributed to the increased public confidence and trust because the government itself acts as the main insurer and the provider of the services relating to healthcare. For instance, LIC Corporation in India and Medicare of the Federal government in US. Furthermore, public health insurance companies offers safety and operates at low cost.

Healthcare Insurance Market Share, By Provider, 2020 (%)

On the other hand, the private segment is estimated to be the most opportunistic segment during the forecast period. The private players are coming up with improved healthcare services and premium options for the customers. Moreover, certain inefficiencies associated with the public sector healthcare insurance companies are overcome by the private market players, and hence is gaining more attention in the market. Moreover, they offer higher benefits as compared to that of the public segment.

Coverage Type Insights

Based on coverage type, the life-time coverage segment accounted for more than 52% of the market share. People chooses a life insurance policy as an investment option that also has huge tax-saving benefits. Moreover, the availability of wider variations of life insurance policies offered by the various market players serves the wider range of customers with different needs.

Healthcare Insurance Market Share, By Coverage, 2020 (%)

On the other hand, the term insurance segment is expected to show highest CAGR during the forecast period. This is attributed to the availability of huge benefits at low cost to the customers. It includes healthcare insurance plans that mainly covers the treatment costs at healthcare units. Therefore, rising prevalence of various chronic disease is the major driver of this segment. This also provides safety and helps the customers to safeguard their medical expenses.

Health Insurance Plans Insights

Based on provider type, the preferred provider organizations segment accounted for over 26% of the market share in 2020. The availability of large variety of insurance plans that offers huge number of options regarding the hospitals and doctors to choose from. The customers or the insurance policy holders have full independence of choosing his doctor or hospital.

The point of sale segment is estimated to be the most opportunistic segment during the forecast period. This is mainly attributed to the characteristics of the point of sale segment. It is a combination of both health maintenance organization and preferred provider organization and hence it enjoys the befit of both.

Region Insights

Based on region, North America accounted for 42% of revenue share in 2020 and is estimated to sustain its dominance during the forecast period. North America is characterized by increased awareness regarding the benefits of healthcare insurance, increased disposable income, increased prevalence of diseases, growing geriatric population, increased demand for the latest surgeries and drugs, and increased expenditure on healthcare. All these factors has augmented the growth of the market in this region.

Healthcare Insurance Market Share, By Region, 2020 (%)

On the other hand, Asia Pacific is projected to reach 9.1% of CAGR during the forecast period. The presence of huge population, rising disposable income, increasing awareness regarding the benefits of insurance policies, rising number of road accidents, and growing desire to invest in a less risky field. Asia Pacific healthcare insurance market is highly fragmented with the presence of huge number of players that have a positive impact on the market growth, is contributing towards the market growth.

Key Companies & Market Share Insights

The market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improved products. Moreover, they are also focusing on maintaining competitive pricing.

In June 2018, UniCredit and the Allianz Group entered into a partnership agreement in Europe that aimed at combining the Allianz’s insurance expertise with UniCredit’s banking franchise.

The various developmental strategies like mergers, acquisitions, and partnerships fosters market growth and offers lucrative growth opportunities to the market players.

Some of the prominent players in the global healthcare insurance market include:

  • Aetna Inc.
  • AIA Group Limited
  • Allianz
  • ASSICURAZIONI GENERALI
  • Aviva
  • AXA
  • Cigna
  • Ping An Insurance (Group)
  • UnitedHealth Group
  •  Zurich

Report Scope of the Healthcare Insurance Market 

Report Highlights Details
Market Size USD 3,948.7 Billion by 2030
Growth Rate CAGR of 7.6% From 2021 to 2030
Largest Market North America
Base Year 2021
Forecast Period 2021 to 2030
Segments Covered Provider Type, Coverage Type, Health Insurance Plans Type, End-Use Type, Level of Coverage Type, Demographics Type
Regional Scope
  • North America
  • Europe
  • Asia Pacific
  • LAMEA
Companies Mentioned Aetna Inc., AIA Group Limited, Allianz, ASSICURAZIONI GENERALI, Aviva, AXA, Cigna, Ping An Insurance (Group), UnitedHealth Group, Zurich.

 

Segments Covered in the Report

By Provider Type

  •  Public
  •  Private

By Coverage Type

  •  Term Insurance
  •  Life-time Coverage

By Health Insurance Plans Type

  •  Point of Service
  •  Preferred Provider Organizations
  •  Exclusive Provider Organizations
  •  Health Maintenance Organizations

By End-use Type

  •  Individuals
  •  Corporates
  •  Adults

By Level of Coverage Type

  • Bronze
  • Silver
  • Gold
  • Platinum

By Demographics Type

  • Minors
  • Adults
  • Seniors

By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
  • Rest of the World

Frequently Asked Questions

What is the current size of healthcare insurance market?
The global healthcare insurance market size was reached at USD 1,899 billion in 2021 and is projected to reach over USD 3,948.7 billion by 2030.
The global healthcare insurance market is growing at a CAGR of 7.6 % during the forecast period 2021 to 2030.
Rising prevalence of chronic diseases, high healthcare costs, increased disposable income, constant new product launches by the numerous players, rising awareness regarding health insurances, and improved services related to claim settlement.
The major market player includes Aetna Inc., AIA Group Limited, Allianz, ASSICURAZIONI GENERALI, Aviva, AXA, Cigna, Ping An Insurance (Group), UnitedHealth Group, Zurich.
The North America accounted for 42% of revenue share in 2020

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