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Healthcare Insurance Market by Coverage Type (Term, Lifetime), by Insurance Type (Medical, Disease, Income Protection), by Service Provider (Public, Private), by Insurance Network (Exclusive Provider Organization, Preferred Provider Organization, Point of Service, Health Maintenance Organization), by Insured Type (Adults, Senior Citizens, Minors), by Distribution Channel (Agents/Brokers, Direct Marketing, Bancassurance), by Geography (U.S., Canada, Germany, France, U.K., Italy Spain, Russia, Switzerland, Sweden, Belgium, Poland, Norway, China, India, Japan, Australia, Singapore, Malaysia, Brazil, Mexico, Argentina, Chile, Colombia, U.A.E., Israel, South Africa, Saudi Arabia) – Global Market Size, Share, Development, Growth, and Demand Forecast, 2014–2024

  • Published: March 2019
  • Report Code: LS11641
  • Available Format: PDF
  • Pages: 185

Healthcare Insurance Market Overview

The global healthcare insurance market is estimated to generate $1.7 trillion revenue in 2018, and is projected to showcase a CAGR of 4.3% during the forecast period. The growth is primarily attributed to growing geriatric population, rising prevalence of chronic diseases, and increasing GDP and healthcare expenditure, across the globe.

Health insurance is a type of insurance coverage that covers medical and surgical expenses of an individual’s treatment. It can reimburse the expenses incurred from illness or injury, or pay care provider directly for the treatment of an insured individual. The customers pay premiums monthly or annually for this service, and these premiums are tax free.

Healthcare Insurance Market

On the basis of coverage type, the healthcare insurance market is bifurcated into term and lifetime coverages. Of the two types of coverage, the term coverage is estimated to be larger as well as faster growing category, generating $1.3 trillion revenue in 2018, and is expected to thrive at a CAGR of 4.7% during the forecast period. This is ascribed to increasing inclination of people toward the term coverage insurance from the lifetime coverage insurance.

Based on insurance type, the healthcare insurance market is classified into medical, disease, and income protection. The medical insurance is anticipated to be the largest and the fastest growing category, propelling at a CAGR of 4.8% during the forecast period. This is primarily due to large network of paneled hospitals offering medical services. However, disease insurance is restricted to a set of specific diseases defined by insurance company, which majorly includes chronic diseases such as hypertension, diabetes, and cardiovascular disorders. Whereas, income protection is the least revenue generating category, growing at a CAGR of 2.4% during the forecast period.

On the basis of insurance network, the healthcare insurance market is categorized into exclusive provider organization (EPO), preferred provider organization (PPO), point of service (POS), and health maintenance organization (HMO). Among the various types of insurance network, EPO is expected to be the largest category in the market, generating $0.9 trillion revenue by 2024. This is mainly due to low cost of consultation and premiums, and a wide network of physicians covered by this type of insurance network. However, PPO is expected to be the fastest growing category in the market, primarily because of the benefit of choosing physician for consultation, in and outside the network.

The healthcare insurance market is categorized into adults, senior citizens, and minors on the basis of insured type. The health insurance plans for adults are expected to hold the largest share in the market, globally. This category is expected to generate $1.2 trillion revenue by 2024, as compared to an estimated value of $0.9 trillion in 2018. The minor category is anticipated to witness a sluggish growth, registering a CAGR of 2.9% during 2019–2024, primarily due to the fact that minors are often considered as dependents on adults and in most of the cases they are covered in health insurance plans bought by adults.

Based on distribution channel, the healthcare insurance market is classified into agents/brokers, direct marketing, and bancassurance. Agents/brokers category is expected to lead the market, throughout the forecast period. This category is expected to thrive at a CAGR of 4.8% during the forecast period, generating $1.6 trillion revenue by 2024. Bancassurance is the second largest category in the market and is estimated to generate $0.3 trillion revenue in 2018, at a CAGR of 3.0% during 2014–2018.

Healthcare Insurance Market

Healthcare Insurance Market Dynamics

Growth Drivers

Some of the key factors driving the growth of the healthcare insurance industry are increasing GDP and healthcare expenditure across the globe, growing geriatric population, and rising prevalence of chronic diseases.

Growing geriatric population is a major issue worldwide. According to report, World Population Prospects, published by the United Nations in 2017, the geriatric population is expected to rise faster than the younger age groups across the globe. The report stated that in 2017 there were 962 million people aged 60 years and above, globally. This number is expected to reach 1.4 billion by 2030 and 2.1 billion by 2050. It is further expected that the number could rise to almost 3.1 billion by 2100.

Besides, increasing prevalence of chronic diseases is another factor propelling the healthcare insurance market. The World Health Organization (WHO) states that chronic diseases are a leading cause of death and disability, globally. It also projects that by 2020, chronic diseases will account for 43.0% of the global burden of diseases. This puts the burden on individuals for spending a significant amount of their income on healthcare needs. To reduce this increasing monetary burden, a large number of people are investing in health insurance, which will curtail their own out-of-pocket expenses on various healthcare needs.

Moreover, increasing GDP and healthcare expenditure of countries is creating lucrative opportunities for the healthcare insurance market. The International Monetary Fund (IMF) states that by year 2020, emerging economies like India, China, and Brazil, among others will perform better than advanced economies like the U.S., Canada, France, and Germany, among others in terms of GDP. This reflects that healthcare spending in emerging economies would be on the rise. Increasing investment in healthcare sector in these economies also supports the growth of the market, as having a health insurance plan is becoming an important component in the overall healthcare regime of an individual. Moreover, as the per capita GDP follows an upward trend, the expenditure on health insurance is likely to increase in the coming years.

Healthcare Insurance Market Competitive Landscape

Ongoing product launches in healthcare insurance market is expected to increase shares of existing key players. For instance, in September 2018, Apollo Munich Health Insurance Company Limited launched a new insurance plan called, “iCan”, specific for cancer patients. The company through this plan offers coverage for hospitalization (inpatient and daycare), conventional treatments like chemotherapy and radiotherapy, and follow up and post treatment under this plan.

Besides, collaborations and acquisitions among the existing key players are expected to boost the healthcare insurance market. For instance, in July 2018, AIA Group Limited completed the acquisition of Commonwealth Bank of Australia’s life insurance business in New Zealand. This partnership will last for 20 years. The company will sell its solutions and services through bancassurance.

Some of the key players in the global healthcare insurance market are Allianz Group, Anthem Inc., Centene Corporation, Kaiser Permanente, Cigna Corporation, Gulf Insurance Group, International Medical Group Inc., Zurich Insurance Group, and Aetna Inc.

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