Due to recent pandemic of Covid 19 health insurance market has grabbed growth ensuring economic help to comman man for better health care facilities with easy money handling and increasing awareness especially after COVID 19.
- Launch of new policies, mergers, acquisitions and partnerships to propel growth in future
- Covid 19 has a huge impact on the health insurance market on Global level.
- Factors, which are responsible for the growth, are the higher cost in hospital bills, increasing prevalence of chronic diseases etc.
- According to Ken Research, the Global health insurance market is projected to grow to ~6% between 2022-2028.
1. Global Health Insurance Market expected to surge with ~6% CAGR Growth in 2022-2028
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The Global health insurance market is witnessing growth during recent years. It is a cost-sharing tool, which cover medical expenses and charges on a particular illness. They can be taken as per the convenience of the individual. The health insurance market is projected to at a CAGR of ~6% from 2022 to 2028.
The market is very dense for new entrants. The market participants often engage in partnerships with healthcare facilities to boost their health insurance sales and expand their market revenue.
Furthermore, market strategies, such as mergers, acquisitions, collaborations, and joint ventures are also prominent in the global health insurance market.
Increasing disposable income and healthcare expenditure, especially in China and India, are also emerging as major driving factors for the market’s growth.
The National Cancer Institute predicts that in 2022, there will be 1,806,590 new instances of cancer identified and 606,520 cancer-related deaths in the United States.
2. Which are the driving factors for the growth of Global health insurance market?
The health insurance industry is growing at a faster rate in the rural areas as it offers various benefits, including reimbursement of the insured person’s disease treatment costs and a lump sum payment in the event of a long-term illness.
Rural consumers are also becoming more knowledgeable about health insurance coverages such as in-patient hospitalization, pre- and post-hospitalization charges, ambulance charges, and domiciliary hospitalization, which supports market growth.
Moreover, doctors & teachers in rural areas have raised health insurance policy awareness, moving the health insurance market forward.
In addition, government entities such as institutions and cooperative banks play a vital role in improving the penetration of health products and services in rural areas by providing affordable insurance policies and facilitating the claim settlement process. Thus, rising awareness of health insurance in rural areas is moving the global industry forward.
3. Impact of COVID 19 on global health insurance market
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Because of the high medical expenditures and increased awareness of the benefits of health insurance policies, the global health crisis caused by the coronavirus has accelerated the demand for COVID-19-specific and comprehensive health insurance policies among individuals.
Moreover, with rising incidences of COVID-19 cases and uncertainty-surrounding patients’ health, the demand for health insurance witnessed a sharp surge during the pandemic.
Furthermore, to provide relief to patients affected by the coronavirus, many countries implemented a wide array of health insurance policies and laws to assist their citizens.
Thus, the pandemic also changed people’s attitudes about medical and health insurance policies, and they learned the importance and advantages of such policies.
Many insurance companies launched Coronavirus Health Insurance to tap on the market opportunity and offer assistance for COVID-19 treatment.
This emerged as the major driving factor for the market growth. The prevalence of other health issues also registered a surge during this period, thereby driving the health insurance market during the forecast period.
4. What is the competitive landscape of global health insurance market?
The leading players in the health insurance market are Cigna Corporation, AIA Insurance Group, UnitedHealth Group Inc., Allianz SE, Zurich Insurance Group Ltd., Express Scripts Holding Company, AXA, Aviva plc, Aetna, Inc. other prominent players.
North America, Europe, Asia-Pacific, Latin America, and Middle East make up the global health insurance market. Among these regions, North America dominates the health insurance market.
However, the Asia-Pacific is projected to witness the highest CAGR during the forecast period due to the presence of a largely untapped market in the region.
Some trending news came from Oscar Health Inc., an American health insurance company, announced its collaboration with Emory Healthcare, an extensive healthcare system in Georgia, US, to offer technology-connected health insurance and care in US cities including Atlanta and Columbus.
Also, SBI General Insurance, a leading Indian Insurance Company, announced its technological collaboration with Google Pay, offering its clients to buy health insurance through the google pay app.
In June 2021, Anthem, Inc. acquired the MMM Holdings, Inc., which allowed the company to serve the consumers in Puerto Rico with Medicaid and Medicare plans.
In April 2021, Molina Healthcare, Inc. entered into an acquisition agreement with Cigna Corporation in which Molina Healthcare acquired Cigna’s Medicare-Medicaid Plan and Texas Medicaid.