The size of the health insurance market was USD 1785 billion in 2021, and it is anticipated to grow to USD 3288.3 billion by 2027. With a CAGR of 10.7%, growth momentum is anticipated to pick up during the forecast period.
According to Healthcare Market Intelligence Companies like Strategy Here, health insurance will pay for any medical costs incurred during the treatment of a sickness, injury, or other physical or mental handicaps. It provides healthcare benefits in return for a monthly, semi-annual, or annual premium or payroll tax. Throughout the term and scope of the insurance, the insurer is required to pay the policyholder's medical costs.
The increase in chronic diseases among the population is one of the main factors fueling market expansion. High medical inflation rates and growing healthcare costs are also anticipated to fuel market expansion. Another positive factor encouraging market development in medium- and lower-income nations is an increase in government initiative. One of the biggest issues facing the market is the absence of inexpensive health insurance.
The high cost of healthcare and increased disposable income are some of the main market drivers. In addition, the federal government is heavily involved in determining all elements of the healthcare industry. For instance, the U.S. Affordable Care Act (ACA) focuses on increasing access to health coverage for those with low incomes. The act intends to enhance the quality of healthcare services, lower the cost of care, and increase insurance coverage.
Due to fierce industry competition and the need to draw in the younger generation to maintain their market share, service providers are concentrating on providing tailored policies. The provision of customized services enhances customer satisfaction and increases consumer attraction and retention. The majority of life insurance startups worldwide are attempting to meet the demand for adaptable on-demand insurance.
The Health Insurance market is experiencing enough growth and opportunities. Around the world, health spending is increasing more quickly. The World Health Organization (WHO) report states that global health spending is increasing. Over the last two decades, global health spending more than doubled, reaching USD 8.5 trillion in 2019, or 9.8% of global GDP. However, it was unevenly divided, with high-income nations making up around 80% of global health expenditures. Out-of-pocket spending (OOPS; 44%) and foreign aid (29% of health spending in low-income countries) were the main sources of funding, while government spending accounted for 70% of health spending in high-income nations. Thus, it is anticipated that rising healthcare costs would present a market opportunity for health insurance worldwide.
Some other Opportunities are as follows:-
- Increasing Cost of Medical Services.
- Mandatory Healthcare Insurance Provision in the Public and Private Sectors.
- Growing Number of Daycare Procedures.
According to Healthcare Market Intelligence Companies like Strategy Here, the market for health insurance grew as a result of the COVID-19 outbreak's increasing acceptance of health insurance. All sectors of the global economy were affected by the COVID-19 epidemic, but it elevated the pharmaceutical sector to the fore. There was some uncertainty in the early stages of the pandemic on whether coronavirus infection would be covered by the current health insurance plan. Many nations established a variety of inexpensive health insurance laws and programs to provide assistance to their citizens during the epidemic. Because of the epidemic, people's opinions on medical and health insurance policies have also changed. People understood how important health insurance is and the benefits it offers.