June 22, 2024
Health Insurance Market

Rising healthcare costs projected to boost the growth of Health Insurance Market

The global Health Insurance Market is estimated to be valued at US$ 2,602.0 Mn as highlighted in a new report published by Coherent Market Insights.

Market Overview:
The health insurance market involves the coverage of healthcare cost or the risk of incurring medical expenses through an insurance policy that may be purchased by individuals or offered by health insurers. Health insurance helps in covering both outpatient care and inpatient or hospitalization expenses. It provides financial protection from unexpected and high medical expenses. Benefits of health insurance include cost coverage for doctor visits, diagnostic tests, surgeries, hospitalization, and medicines. It aids in reducing the financial burden associated with medical treatments and ensures access to healthcare services.

Market key trends:
One of the key trends in the health insurance market is the rising demand for telemedicine. Advancements in digital health technologies have enabled the growth of telemedicine, which allows patients to consult doctors virtually using video conferencing applications. This has emerged as an attractive solution amid healthcare challenges posed by the COVID-19 pandemic. Insurers are also expanding coverage for telehealth in 2023 and is expected to exhibit a CAGR of 9.7% over the forecast period 2023 to 2030, consultations to increase access to care. Another trend is the growing focus on value-based care models where insurers are partnering with providers to shift from fee-for-service to payment systems linked to quality and health outcomes. This aims to curb costs while improving patient experience and health.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is medium as the health insurance market requires huge investments and compliance with regulations which makes it difficult for new players to enter. However, ease of online operations has lowered the entry barriers to some extent.
Bargaining power of buyers: The bargaining power of buyers is high given the large number of insurers providing similar offerings. Buyers can negotiate on price and coverage.
Bargaining power of suppliers: The bargaining power of suppliers is low as health insurers do not depend on a few key suppliers and there are many providers to choose from.
Threat of new substitutes: The threat of new substitutes is medium as some people opt for cashless health services and direct payments over insurance. Self-insurance through health savings is also a potential threat.
Competitive rivalry: Competition in the industry is intense with companies focusing on product differentiation and building loyal customer base.

Key Takeaways
The global Health Insurance Market Share is expected to witness high growth, exhibiting CAGR of 9.7% over the forecast period 2023 to 2030, due to increasing healthcare costs. The market size for 2023 is estimated to be US$ 2,602.0 Mn.

Regional analysis: North America dominates the global health insurance market currently owing to factors such as high healthcare expenditure and awareness. Asia Pacific is expected to grow at the fastest pace during the forecast period with increasing healthcare infrastructure and focus on preventative healthcare in countries like India and China.

Key players: Key players operating in the health insurance market are Aetna Inc., AIA Group Limited, Allianz, Assicurazioni Generali S.P.A., AVIVA, AXA, CIGNA, Ping an Insurance, and UnitedHealth Group Inc., among others. Players are focusing on developing new integrated products and strengthening their distribution networks globally.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it