February 22, 2024

Providing Coverage for Lifes Challenges: An Overview of the Global Health Insurance Market

The global Health Insurance Market is estimated to be valued at US$2606.72 Mn in 2024 and is expected to exhibit a CAGR of 9.9% over the forecast period of 2024 to 2031, as highlighted in a new report published by Coherent Market Insights. Health insurance helps cover the expense of medical care and offers individuals and families protection against high and unexpected medical bills. It is a key mechanism for risk pooling in healthcare.

The market is seeing steady growth due to factors such as rising chronic disease prevalence, innovations extending life expectancy, and policy reforms expanding insurance access. Major players like Aetna Inc., AIA Group Limited, Allianz, Assicurazioni Generali S.P.A., AVIVA, AXA, CIGNA, Ping an Insurance, and UnitedHealth Group Inc. dominate global competition. Their comprehensive insurance products and large customer networks have made them industry leaders. However, new entrants are challenging incumbents’ market share through online/mobile platforms and tailored plans appealing to younger demographics.

The key drivers fueling the health insurance market include rapidly aging populations worldwide and the subsequent rise in age-related medical conditions like cancer and heart disease. From 2000 to 2050, the proportion of the world’s population over 60 years will double from about 11% to 22%. Additionally, unhealthy lifestyle factors are driving up rates of chronic diseases which require long-term treatment and raise healthcare spending. Chronic diseases now account for over 60% of deaths globally each year.

Challenges
The health insurance market is facing multiple challenges such as increasing healthcare costs, growing gap between premiums and claims, and affordability issues. Rising medical inflation has led to soaring healthcare costs globally. The widening gap between health insurance premiums collected and actual claims paid is reducing profitability for insurance providers. With increasing healthcare expenditures, health insurance affordability has become a major concern especially in developing regions.

PEST Analysis
Political: Stringent regulations and government intervention regarding minimum coverage requirements and premium pricing. Economic: Rising income levels are driving demand while higher medical costs are posing affordability challenges. Social: Growing health awareness and need for financial protection against health risks. Technological: Advancements in telemedicine, digital health records, and remote patient monitoring are enabling more efficient and affordable healthcare delivery.

Geographical Regions
North America dominated the global market share in 2023 with over 35% owing to well-established private healthcare systems and high healthcare expenditure in the US and Canada. Asia Pacific is anticipated to witness the fastest growth during the forecast period majorly supported by expanding healthcare infrastructure and increasing insurance penetration in countries like India, China, and Indonesia.

Key Takeaways
The global health insurance market is expected to grow with growing health awareness and demand for financial security against medical costs.

Major market players are focusing on global expansions, especially in emerging Asia Pacific and Latin American countries, to tap new customer segments and boost revenues. Technological adoption in healthcare like telemedicine,AI, and big data analytics provide opportunities for customized plans,paperless claims processing, and lower administration costs benefiting both insurers and customers. Rapid urbanization,rise of lifestyle diseases,and longer life expectancy will further fuel demand for innovative and affordable health protection plans worldwide.

*Note:                                                                          

  1. Source: Coherent Market Insights, Public sources, Desk research

2. We have leveraged AI tools to mine information and compile it