Critical Illness Insurance Market Size To Rise USD 735.63 Bn By 2032

Published Date : 05 Jan 2024

The global critical illness insurance market size exceeded USD 358.6 billion in 2022 and is expected to rise to USD 735.63 billion by 2032, growing at a CAGR of 7.5% during the forecast period from 2023 to 2032.

Critical Illness Insurance Market Size and Growth Rate From 2023 To 2032

Market Overview

A subset of the insurance market known as critical illness insurance covers customers who have been diagnosed with severe medical issues. The population's fixation on critical illness insurance is rising as they seek financial security against serious health problems, partly due to the aging population and longer life expectancies.

The availability of funds and discretionary income impact an individual's capacity to acquire critical illness insurance. Risk assessment and pre-existing condition factors are two underwriting procedures used by insurance firms that may have an impact on the availability and price of critical illness insurance. There is increased interest in critical illness policies, which can assist in paying for both medical and non-medical costs during treatment due to rising healthcare costs and gaps in typical health insurance coverage.

The need for this kind of insurance has increased as awareness of the financial dangers of severe illness has grown. Critical illness insurance is a desirable choice to offset the high cost of treatment due to rising medical prices. The need for insurance coverage is fuelled by the aging population's rising critical illness prevalence. Though frequently at a considerable cost, medical innovations have improved the detection and treatment of essential illnesses, making survival feasible. Certain governments may promote or require critical illness insurance to lessen the financial strain on public healthcare systems. Insurers offer more customized policies, enabling customers to choose coverage that meets their unique requirements.

  • In April 2023, the investment of the Pan-Asian life insurance business FWD Group holdings in Gibraltar BSN Life Berhad was finalized. Following the sale of its holding by U.S.-based Prudential Insurance, FWD Group announced that it would acquire an effective 70% stake in Gibraltar BSN alongside other investors. Following the completion of the transaction by FWD group and other investors, Bank Simpanan Nasional now owns 30% of Gibraltar BSN.
  • In September 2022, Intelligent Flex Protect Solution, a three-in-one plan from Max Life Insurance Company Ltd., began to offer enhanced life and health insurance and market-linked investment returns. The Smart Flexi covers solutions that combine Max Life Flexi Wealth Plus with Max Life Critical Illness and Disability Secure Rider, providing complete protection against critical illness, death, and disability in addition to wealth creation.

Regional Snapshot

North America holds the largest share of critical illness insurance market. The demand for additional coverage beyond standard health insurance and growing awareness of the financial risks associated with major conditions have led to a growth in the region's critical illness insurance industry in recent years. People and organizations seek additional insurance options due to rising healthcare expenses and traditional health insurance coverage gaps. The need for insurance has increased due to North America's aging population since age increases the likelihood of contracting major illnesses.

North America has many significant insurance providers that offer critical illness insurance coverage. These plans could be sold separately or as add-ons to health or life insurance plans. Some of the key critical illness insurance market players include Aegon, Allianz Care, American International Group, Inc., Aviva, AXA Hong Kong, AFLAC Incorporated, and Bajaj Allianz General Insurance Co.

  • In June 2023, Aegon N.V. AEG announced that its EUR 200 million stock repurchase program was completed. The repurchase was intended to give shareholders their money back, and it was disclosed this year. AEG repurchased 46,797,567 common shares through a third party through the buyback program. The average price per share was EUR 4.2737.
  • In November 2023, with a maximum purchase price of $1.0 billion, American International Group launched a cash tender offer for its 13 outstanding debt instruments. AIG intends to purchase, retire, and cancel the approved securities, provided no unfavorable legal or market developments occur.

In the U.S., the market for critical illness insurance has been expanding as more consumers look for security measures beyond standard health insurance. The rising demand for this kind of coverage is partly due to people being more conscious of the financial consequences of significant illness. Major illnesses and medical disorders are usually covered by critical illness insurance coverage. Upon diagnosis, policyholders receive a lump sum payment that they can use to pay for living expenses, medical bills, or other necessities. The significance of critical illness insurance has been gradually brought to consumers' attention.

  • In October 2022, Under Secretary Xochitl Torres Small of the U.S. Department of Agriculture Rural Development announced that the USDA is providing $110 million in grants to upgrade healthcare facilities in rural areas nationwide. With the aid of these grants, 208 rural healthcare groups serving almost 5 million people in 43 states and Guam will be able to extend essential services.

Like many other industrialized nations, Canada's critical illness insurance market is impacted by several variables, including regulatory framework, healthcare trends, and demography. A variety of significant illnesses, including cancer, heart attacks, strokes, and organ failure, are usually covered by critical illness insurance policies. The particular conditions that each insurance provider covers may differ. There has been a rise in Canadian's awareness of critical illness insurance. Nonetheless, insurance companies must always keep informing customers about the value of this kind of coverage. Financial advisors, insurance brokers, and internet platforms are some methods used to offer insurance products, including critical illness insurance.

  • In September 2022, the digitally-first insurance company, which aims to provide easy-to-afford insurance to Canadian families, announced that it had raised $18 million in Series A funding. Along with current investors HCS Capital and Westdale Properties, new investors RGAX, Securian Financial, and Sirius Point are part of the raise.

Critical Illness Insurance Market Report Scope

Report Coverage Details
Market Revenue in 2023 USD 383.70 Billion
Projected Forecast Revenue by 2032 USD 735.63 Billion
Growth Rate from 2023 to 2032 CAGR of 7.5%
Largest Market North America
Base Year 2022
Forecast Period 2023 to 2032
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa


Market Dynamics

Drivers

Advancements in medical technology

Genetic predispositions to specific illnesses can now be detected early because of advancements in customized medicine brought about by genomics. Better risk assessment and early intervention may result from this. These non-invasive tests help identify some malignancies early by identifying genetic changes or mutations in the blood. This method targets and destroys cancer cells by utilizing the body's immune system. Numerous malignancies have shown improvement with its treatment. With advances in genetics and diagnostics, it is now possible to customize medical care to each patient's unique traits.

Rising incidence of critical illnesses

Severe and chronic illnesses can rise in number as a result of aging populations in many nations because these ailments tend to become more common as people age. Critical illnesses, including heart disease, diabetes, and cancer, can arise as a result of unhealthy lifestyle choices like poor food, inactivity, and elevated stress levels. The number of reported cases may rise due to the early detection of urgent illnesses brought about by improved diagnostic methods and medicinal advances. The increased prevalence of critical diseases could be attributed to chemical exposure and environmental pollution.

Restraints

High premiums

There is an increased risk for insurers when providing critical illness insurance. The insurance firm bears more risk because the policies usually cover severe and potentially fatal conditions. Improved diagnostics and advances in medical technology have raised the possibility of early detection of serious illnesses. This implies that policyholders may endure severe diseases and live longer, giving insurers extended payout periods. The policyholder's selection of coverage level has a direct impact on the premium. Higher rates are associated with higher coverage quantities.

Changing health landscape

Medical technology advancements help physicians with early detection and better treatment of critical illnesses. The possibility that policyholders would survive and recover from diseases previously thought to be fatal has consequences for critical illness insurance. Personalized medicine and genomics developments could result in more specialized insurance offerings. Insurers may use genetic data to estimate individual risk more precisely. However, this approach presents ethical and privacy issues, such as potential misuse of sensitive information and the need for robust data protection measures. The need for critical illness insurance is rising as people become more conscious of severe illnesses and the financial consequences they can have.

Opportunities

Increasing awareness

Insurance providers offer instructional resources that define critical illness insurance, list the ailments it covers, and describe how it works with other insurance policies. They often also use social media channels to connect with a large number of people. Data regarding success stories, infographics, and exciting content to make the information more accessible attract the attention of consumers. Also, market players promote their services as an all-inclusive healthcare plan component and collaborate with employers, insurance brokers, and healthcare providers. Seminars and workshops in association with medical specialists are held to raise awareness of the value of critical illness insurance and the financial implications of critical illness. These highlight the benefits of critical illness insurance to provide a sense of security and confidence in the product.

Collaboration with healthcare provider

Insights regarding critical illness can be obtained from healthcare providers, which can aid insurers in comprehending and evaluating risks. These partnerships may result in more precise pricing and underwriting. Working together can simplify the claim procedure. Healthcare providers can quickly supply the required medical data, which helps insurers handle claims more rapidly and with greater customer satisfaction. Insurance can access and analyze health data through collaboration with healthcare providers. Trends, hazards, and underwriting models can all be improved using this data.

Recent Developments

  • In September 2023, Bupa, a health insurer, introduced a new offering centered on exceptional family savings. Comprehensive mental health coverage, cancer coverage, and parent overnight stays if a child needs to spend the night in the hospital are all included in the Bupa family + package.
  • In May 2023, AIA Hong Kong announced its 'AIA Assemble,' a first-in-the-market customizable critical illness plan. This plan set a new industry standard by allowing customers to customize their sum assured and critical illness protection, giving them more flexibility and freedom.

Key Market Players

  • AIA Group Limited
  • Manulife Financial Corporation
  • Prudential Financial, Inc.
  • Ping An Insurance (Group) Company of China, Ltd.
  • China Life Insurance Company Limited
  • Allianz SE
  • Zurich Insurance Group
  • Aviva plc
  • Bupa
  • MetLife, Inc.
  • American International Group, Inc. (AIG)
  • Sun Life Financial Inc.
  • AXA
  • Tokio Marine Holdings, Inc.
  • Generali Group

Market Segmentation

By Premium Type

  • Monthly
  • Quarterly
  • Half Yearly
  • Yearly

By Diseases

  • Cancer
  • Heart Attack
  • Stroke
  • Major Organ Transplant
  • Other

By Type

  • Individual Insurance
  • Family Insurance

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