The Global Health Insurance Market size was valued at USD 2.6 Trillion in 2021, and is projected to reach USD 3.3 Trillion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 4.4% from 2022 to 2028. Health insurance is defined as coverage that provides for the payments of benefits as a result of sickness or injury. It includes insurance for losses from accidents, medical expenses, disability, or accidental death and dismemberment.
Chronic diseases have been increasing in recent times, which is posing as a driving factor for the Health Insurance Market. The rise in healthcare costs and medical inflation rates are estimated to encourage market expansion. Furthermore, a growing government initiative in middle and lower economic countries is another favoring factor that is fostering the Health Insurance Market progression. The COVID-19 pandemic affected all business sectors across the globe, but it placed the Health Insurance industry in the spotlight. A state of utter confusion took place at the beginning of the pandemic regarding whether the existing insurance plan can cover coronavirus infection or not. Many different Health Insurance plans were launched by governments to provide relief to their citizens from the pandemic. The pandemic changed the mindset of the people regarding Health Insurance policies. The Health Insurance Market is projected to grow exponentially during the pandemic owing to the rising awareness among people and the increasing spread of coronavirus infection around the world.
The Global Health Insurance Market is segmented on the basis of service providers into public and private sectors. Further, based on the type it includes hospitalization insurance, critical illness insurance, income protection insurance, medical insurance, and life insurance. Life insurance provides financial support during trauma crises and such factors might accelerate the industry size of health insurance during the forecast timeframe. Based on the age-group segment, the market is classified into minors, adults, and senior citizens. The adult segment in the Health Insurance Market is poised to expand at a significant rate till 2028. The high prevalence of lifestyle diseases such as obesity, diabetes, cardiac diseases, and others in the adult population has increased the health risk. Therefore, the adult population is more susceptible to chronic diseases and might require long-term medical attention. To overcome increasing healthcare expenditure, adults are adopting medical insurance plans to avoid financial emergencies in the future and these factors will boost the Health Insurance industry revenue.
The healthcare provider segment of the market is bifurcated into Health Maintenance Organization [HMO], Preferred Provider Organization [PPO], Exclusive Provider Organization [EPO], and others. The preferred provider organization segment in the Health Insurance market will witness considerable growth during the forecast period. PPOs facilitate well-managed healthcare plans for their patients, and they offer more flexibility in their plans. In the PPO plan, less paperwork is required which might further foster the industry value of health insurance.
Health Insurance Markethas been studied in North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa.North America is the largest region of the Health Insurance Market for the past few years and it will keep increasing in the upcoming years. North America region owns 36.5% of the global market. While Asia Pacific is expected to grow at the fastest rate during the forecast period.
Some of the prominent companies functioning in the Global Health Insurance Market are United Healthcare, Aetna, Anthem Inc., Aviva, Allianz, Centene, Cigna, CVS Health Corporation, Humana, Kaiser Foundation, Bupa.