Healthcare Insurance Market Size Reach USD 3,948.7 Billion by 2030

Prathamesh

3 months ago

The global healthcare insurance market is expected to reach USD 3,948.7 billion by 2030, poised to grow at a CAGR of 7.6% during the forecast period 2021 to 2030.

Key Points

North America led the global market with the largest market share of 42% in 2020.
Asia-Pacific is expected to expand at the fastest CAGR of 9.1% during the forecast period.
By Provider, the public segment has held the largest revenue share of 56% in 2020.
By Provider, the private segment is anticipated to grow at a fastest CAGR during the projected period.
By Coverage Type, the life-time coverage dominated the global market in 2022.
By Coverage, the term insurance segment is projected to expand at the fastest CAGR over the projected period.
By Health Insurance Plans, the preferred provider organizations segment had the biggest market share of 26% in 2020.
By Health Insurance Plans, the point of sale segment is anticipated to grow at the fastest CAGR over the projected period.

The high costs associated with the healthcare are a major factor behind the burgeoning demand for the healthcare insurance market. The rising prevalence of various chronic diseases, high expense associated with the latest treatments, alarming rise in the number of road accidents, and improved services of the insurer regarding the claim settlement are the significant factors that are contributing towards the growth of the global healthcare insurance market.

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The COVID-19 had a very evident impact on the global healthcare insurance market. The rapidly spreading COVID-19 disease among the population made people scared. Moreover, the private hospitals were offering very expensive treatment for the COVID-19 patients. This high cost of the COVID virus and higher chances of getting affected with the virus compelled the population to increasing opt for a healthcare insurance.According to Policybazaar.com, an online portal for all types of insurance products, it sold one million insurance policies between April and December in 2020.

North America dominated the market in 2020. The rising awareness regarding the healthcare insurance, increased adoption of technologically advanced treatments, and growing geriatric population are the major driving force of the market. Moreover, the increased disposable income and higher demand for the latest and expensive treatment methods is fueling the growth of the market.

Asia Pacific is expected to be the fastest growing market during the forecast period. Rapid urbanization, increased healthcare costs in the region, rising disposable income, rapidly growing healthcare and the insurance sector, and growing demand for saving medical expenses. The rising number of young population in the region are expected to be an important driver of the healthcare insurance market in the region.

The rising burden of diseases and associated expensive treatments remains the major driver of the healthcare insurance market. According to the International Agency for Research on Cancer, around 19.3 million new cancer cases and around 10 million cancer related deaths were reported in the year 2020, across the globe. According to the World Health Organization, diabetes is a major cause of blindness, kidney failure, heart attacks, and strokes. According to the WHO, road accidents are the major cause of death among the children and young adults, aged 5 years to 29 years. All these health risks are the major drivers of the healthcare insurance market.

The low awareness and less public confidence on the private players especially in the developing and underdeveloped nations is a major challenge for the healthcare insurance players. For instance, LIC Corporation is a Indian government controlled and funded insurance company and it enjoys 100% consumer confidence, while the private insurance companies lacks in building the confidence of the consumers.

The low disposable income of the consumers in the developing and the underdeveloped economies is a major factor that may hamper the market growth. The low income group utilizes all their income in fulfilling their basic needs and has no intention to invest in any kind of insurance policies. Moreover, the increased penetration of government hospitals that offers treatment and medicines at low cost or free of cost is the major factor that may hinder the market growth during the forecast period.

Table of Contents

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Healthcare Insurance Market Scope

Report Highlights	Details
Market Size in 2023	USD 2,026.20 Billion
Market Size by 2030	USD 3,948.7 Billion
Growth Rate from 2021 to 2030	CAGR of 7.6%
Largest Market	North America
Base Year	2021
Forecast Period	2021 to 2030
Segments Covered	Provider Type, Coverage Type, Health Insurance Plans Type, End-Use Type, Level of Coverage Type, Demographics Type

Based on the provider, the public segment dominated the market in 2020. This is because consumers seeks confidence and trust with their money and when the government itself becomes the insurer, it gets rapid traction in the market. For instance, Medicare and Medicaid are the government operated insurance companies in the US that has no trust issues in the minds of the common public.

Based on the coverage type, the term insurance segment is expected to be the fastest-growing segment during the forecast period. Term insurances provides higher coverage at lower cost as it mainly involves health insurance and it covers the expenses of any medical emergencies or critical health conditions. The healthcare costs are very high and consumers are opting for term insurance policies owing to the rising burden of diseases across the globe.

Based on the provider type, the preferred provider organization (PPO) was the dominating segment in 2020. The PPO offers huge number of options in the hospitals and doctors to choose from. The customers or the insurance policy holders have full independence of choosing his doctor or hospital. This is also the most common provider type, which is a major reason behind its dominance.