Healthcare Insurance Market Size to Surpass US$ 3,948.7 BN by 2030

Published Date : 22, 2022

As per Precedence Research, the global healthcare insurance market size is expected to surpass around US$ 3,948.7 billion by 2030 and expanding growth at a registered CAGR of 7.6% from 2021 to 2030.

The healthcare insurance market has witnessed a strong growth in the past few decades and is growing significantly across the globe. The growing health awareness, rising prevalence of chronic diseases, increasing number of road accidents, and increasing awareness regarding the benefits of healthcare insurances among the individuals are the major factors that are projected to drive the global healthcare insurance market. The favorable policies regarding the reimbursements and the affordable premium plans designed by the companies are boosting its adoption across the globe. Rising healthcare costs, new product launches, and improved claim settlement systems is resulting in the growing adoption of the healthcare insurances.

The surging popularity of various insurance aggregators like Policybazaar.com, are significantly contributing towards spreading awareness regarding the benefits of healthcare insurances and sales of various policies. The rapidly growing geriatric population across the globe especially in the developing economies is expected to provide numerous opportunities to the market players. According to the United Nations, the global old age population is expected to reach at around 2 billion by 2050 and about 80% of them will be living in the low and middle income countries.

  • Based on the provider, the public segment has garnered 56% revenue share in 2020
  • By coverage type, the life-time coverage segment hit largest revenue share 52% in 2020
  • By provider type, the preferred provider organizations segment dominated the market with 26% revenue share in 2020
  • By region, North America region was garnered reveneue share of around 42% in 2020

Scope of the Report

Report Attributes

Details

Market Size by 2030

USD 3,948.7 Billion

Growth Rate from 2021 to 2030

CAGR of 7.6%

North America Market Share in 2020

42%

Asia Pacific Growth 2021 to 2030

9.1%

 

Report Highlights:

  • Based on the provider, the public was the dominating segment with a market share of 56% in 2020. There is high public confidence and trust associated when the government itself is the insurer. The higher trust and confidence of people on the government regarding the safety of their premium has exponentially contributed to the growth of the public insurance companies across the globe.
  • On the basis of coverage type, the healthcare insurance market was dominated by the life-time coverage segment, which garnered a market share of over 52% in 2020. The guaranteed benefit upon death and the life-time coverage is the major attraction that has fueled the demand for the healthcare insurances across the globe. Furthermore, many individuals take it as an investment option and hence, the demand for the life-time insurance policies is higher.
  • Depending on the health insurance plan, the preferred provider organization was the leading segment in 2020. The preferred provider organizations offers a wide variety of insurance policies and hospitals to the customers, which is a major factor that has fueled the growth of this segment in the global healthcare insurance market.
  • North America was the leading healthcare insurance market in 2020. The higher product acceptance, higher dependence on the reimbursement for receiving healthcare services, high disposable income, higher prevalence of chronic diseases, presence of numerous top healthcare insurance providers, and the availability of strong and developed healthcare infrastructure. The healthcare costs are very high in North America. The healthcare accounts for around 18% of the GDP of US. The higher penetration of the healthcare insurance in the region has resulted in the dominance of North America in the global healthcare insurance market.
  • Asia Pacific is estimated to grow at the highest CAGR of 9.1% during the forecast period. Asia Pacific is witnessing increasing burden of diseases, rising disposable income, growing awareness regarding the benefits of insurance, and rapidly growing healthcare infrastructure which are playing a prominent role in the growth of the Asia Pacific healthcare insurance market. According to the World Health Organization, 93% of the road accidents occurs in low and middle income countries. The surging number of road accidents is fueling the demand for the healthcare insurances among the people.

Future of Healthcare Insurance Market

The rapidly growing penetration of the private insurers and the increasing popularity of the policy aggregators across the globe are the trending factors that are estimated to spur the market growth in the foreseeable future. With the growing adoption of the digital technologies, the selling of insurance policies and collection of premiums have become faster, which is fostering the healthcare insurance market growth.

COVID-19 Impact Analysis:

  • The outbreak of the COVID-19 pandemic resulted in a sudden spike in the demand for the healthcare insurances across the globe.
  • The introduction of numerous policies that covered the costs of the COVID-19 treatment gained significant traction among the consumers.
  • According to an insurance policy aggregator, Policybazaar.com, it sold about one million policies between April and December in 2020.

Key Developments in the Marketplace:

  • In June 2018, UniCredit partnered with the Allianz Group entered in Europe that aimed to integrate Allianz’s expertise to the UniCredit’s banking franchise.

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