Published Date : 09 Dec 2022
The global health insurance market size was exhibited at USD 2241.1 billion in 2022 and it is expected to hold around USD 3,793.4 billion by 2030, growing at a CAGR of 6.8% during the forecast period 2022 to 2030.
The demand for health insurance is expected to grow at a burgeoning pace owing to the rising awareness regarding the benefits of health insurance among consumers, the growing burden of diseases, the rising elderly population across the globe, the growing penetration of the internet, and the rising popularity of insurance policy aggregators. Furthermore, the regulatory reforms of the government pertaining to reimbursements for the services acquired from telehealth platforms is further projected to drive market growth in the upcoming years. The rising literacy rate, rising inflation, and high healthcare costs are the major factors that are boosting the adoption of health insurance among the population. Furthermore, the presence of numerous regional and global market players and their attractive offers and marketing strategies are grabbing the customer's attention.
Health Insurance Market Report Scope
|Market Size In 2022||USD 2241.1 Billion|
|Market Size By 2030||USD 3,793.4 Billion|
|Growth Rate from 2022 to 2030||CAGR of 6.8%|
|Forecast Period||2022 to 2030|
|Segments Covered||By Provider, By Coverage Type, By Network Provider, By Plan Type, By Age Group, By Distribution Channel|
|Regions Covered||North America, Europe, Asia-Pacific, Latin America, Middle East and Africa|
North America was the dominating health insurance market in 2020. The presence of leading insurance companies in the region and the higher penetration of health insurance in the region has significantly contributed towards the growth of the health insurance market in North America. Healthcare costs is very high in this region. The healthcare expenditure in US in 2018 constituted around 18% of the GDP, Furthermore, the increased government investments in the adoption of advanced healthcare technologies and enhanced access to healthcare facilities have fueled the demand for health insurance. The increased prevalence of chronic diseases in the region has significant contributions in the growth of the health insurance market in North America. It is estimated that more than half of the US population is suffering from at least one chronic condition.
Asia Pacific is expected to be the fastest-growing market during the forecast period. Asia Pacific is witnessing an increased corporate and public investments in the development and advancement of the healthcare infrastructure in the region. The rising penetration of telehealth platforms and rising awareness regarding the benefits of health insurance is expected to propel the growth of the market. The government policies regarding reimbursements is also playing a crucial role in the growth of the Asia Pacific health insurance market. The rising prevalence of various chronic diseases and the rapidly growing geriatric population is anticipated to boost market growth. According to the United Nations, around 80% of the elderly population of the globe will be living in low and middle-income countries by 2050.
Driver: Rapidly surging prevalence of chronic diseases
The changing lifestyle, changing consumption patterns, rising prevalence of smoking, growing consumption of tobacco, increasing consumption of processed food, and physical inactivity are some of the prominent factors that are contributing to the growth of the patient pool across the globe. These factors are leading to various diseases such as cancer, cardiovascular diseases, neurological disease, and respiratory diseases. These chronic diseases are among the leading causes of death across the globe. Therefore, access to advanced healthcare facilities and services is very much expensive and hence the demand for health insurance is expected to grow rapidly during the forecast period.
Restraint: Lack of proper healthcare infrastructure in rural areas
There is a lack of basic healthcare facilities in the rural areas of developing and underdeveloped countries. Moreover, the less access to basic healthcare services and the lack of knowledge regarding the availability of health insurance is a major factors that may hinder the market growth during the forecast period.
Growing penetration of digital technologies
According to the International Telecommunication Union, around 63% of the global population had access to the internet in 2021. The rising penetration of the internet, rising adoption of smartphones, growing penetration of social media, increasing popularity of online insurance policy aggregators, and rising consumer awareness are the major factors that is projected to boost the market growth in the foreseeable future. Furthermore, the rising investments in the development of IT and telecommunications infrastructure is expected to play a crucial role in the growth of the market.
Challenge: Low per capita income of the consumers
The majority of the people in the rural areas of developing and underdeveloped economies are below the poverty line. The income earned by them gets completely exhausted in food and other basic necessities. Most of them depend on the free government healthcare services and NGO services for receiving treatment. The low affordability of these consumers is a major challenge that restricts the penetration of health insurance.
Key Market Players
By Coverage Type
By Network Provider
By Plan Type
By Age Group
By Distribution Channel
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