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The health insurance market offers financial protection against medical expenses. It provides coverage for hospitalization expenses arising from accidents, critical illnesses, and other unforeseen circumstances. It reimburses patients for the costs associated with medical treatments. Factors such as the growing prevalence of chronic diseases, rising healthcare costs, and expansion of health insurance plans through government and private organizations are fueling the demand for health insurance. 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 2024 to 2031.
Key Takeaways
Key players operating in the health insurance are Aetna Inc., AIA Group Limited, Allianz, Assicurazioni Generali S.P.A., AVIVA, AXA, CIGNA, Ping an Insurance, and UnitedHealth Group Inc. These key players are focusing on improving access to healthcare by introducing new subscription plans with higher coverage. For instance, in 2023, Aetna Inc. launched a new affordable health insurance plan to cater to the elderly population.
The growing prevalence of chronic diseases and rising medical costs are fueling the demand for health insurance globally. As per the CDC, over half of the adults in the US suffer from chronic diseases. Health insurance helps in reducing the economic burden of medical treatments.
The health insurance market is expanding rapidly in developing nations due to the rising income levels and growing awareness. Government initiatives to promote universal healthcare are also driving the adoption of health insurance in countries such as China, India, and Brazil. For example, under the Ayushman Bharat Program launched in 2018, the Indian government aims to provide Rs. 5 lakh health insurance cover to over 100 million poor families.
Market Key Trends
One of the major trends in the health insurance market is the increasing adoption of technology such as AI, blockchain, and telemedicine. Leading players are innovating insurance plans and claims processing using these technologies. For instance, AXA’s telemedicine plan provides customers with 24/7 access to doctors via video calls for medical assistance. Blockchain is being used to securely store patient data and streamline insurance claim procedures. These innovations are expected to make healthcare more affordable and drive the health insurance market during the forecast period.
Porter’s Analysis
Threat of new entrants: Low barrier to entry due to high requirement of capital and regulatory compliance. Bargaining power of buyers: Buyers have low bargaining power due to need of insurance and limited options available. Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of alternative suppliers and dependence of insurers on suppliers. Threat of new substitutes: Substitutes like self-insurance pose minimal threat due to costs and limited scope. Competitive rivalry: High competition due to presence of many international and domestic players operating in the market.
The geographical region where the health insurance market is currently concentrated in terms of value is North America. North America accounts for the largest share in the global health insurance market due to high healthcare costs and developed healthcare infrastructure in countries like United States and Canada. The Asia Pacific region is expected to witness the fastest growth in the health insurance market during the forecast period owing to rising healthcare costs, increasing prevalence of chronic diseases, growing geriatric population, improving regulatory framework, and economic growth in emerging countries like India, China and Southeast Asian countries.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
