As per Market Research Future Analysis, the Critical Illness Insurance Market was valued at USD 233 billion in 2023 and is projected to grow to USD 418.39 billion by 2032, with a CAGR of 6.00% from 2024 to 2032. The market is driven by increasing awareness of critical illness insurance benefits, rising prevalence of chronic diseases, and the need for additional financial protection against high medical costs. The growing geriatric population and sedentary lifestyles further contribute to market demand. Major insurance companies are expanding their product offerings to include a variety of critical illnesses, enhancing market growth opportunities.
Key trends driving the Critical Illness Insurance Market include rising chronic disease prevalence and innovative product offerings.
Key players include AEGON Life Insurance Company Ltd., AXA Hong Kong, Legal & General Group plc, Ping An Insurance, Prudential, AIG, and Cigna.
Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review
Critical illness insurance offers additional protection for illnesses like cancer, heart attacks, and strokes. The Affordable Care Act (ACA), shifting employer benefit goals, and new distribution strategies are just a few reasons for increased interest in critical illness insurance. A further factor anticipated to fuel market expansion is the rising prevalence of chronic disorders. It is predicted that the market for critical illness insurance will expand profitably. The primary reason for this growth in knowledge has been the rise in severe illnesses like heart attacks, cancer, kidney failure, and stroke. Untapped markets and developing nations have considerable growth prospects because they have low critical illness insurance awareness and uptake rates.
The need for insurance protection for critical illnesses is anticipated to expand as these markets develop and public awareness of healthcare issues grows. The market for critical illness insurance is anticipated to develop due to increased critical illness cases, higher costs for insurers, and a rise in the number of people without insurance. The market for critical illness insurance is predicted to be driven by rising medical costs. These policies give out cash to assist in covering those overruns whenever regular health insurance can come in short because such emergencies or illnesses frequently incur higher than normal medical costs. In addition, if a covered condition is discovered, critical illness insurance gives out a lump payment to the insured. This payout can cover anything from financing costs to medical expenditures.
The costs that health insurance does not cover, such as deductibles or out-of-network doctor fees, can also be covered by critical illness insurance. One of the main drivers of the growth of the critical illness insurance industry is the increase in the number of illnesses safeguarded by critical illness insurance policies. Major insurance companies are focusing on covering a variety of new ailments. The increasing prevalence of serious diseases like malignancy, heart disease, and stroke significantly fuels the market for critical illness insurance. The desire for insurance coverage to lessen medical care and rehabilitation costs rises as people become more cognizant of the financial strain connected with these conditions. Insurance companies can create unique, tailored critical illness insurance plans. Insurers can meet the varied needs and interests of those seeking critical illness coverage by providing flexible coverage options, specialized packages, and extra benefits.
After receiving clearance, HDFC Life might concentrate on critical illness products as it enters the health insurance market. The life insurance company will likely concentrate on critical illness products with IRDAI's approval. The business also wrote to the insurance authority to request permission to offer additional financial goods such as bank deposits, loans, and mutual funds.
The growing geriatric population is one of the key driving factors fueling the market. A large number of the aged population is suffering from other chronic diseases such as heart disease, cancer, type 2 diabetes, and arthritis, further increasing the demand for HI policies among this age group. Moreover, adopting sedentary lifestyles among the adult population leads to an increased patient pool living with different chronic diseases. The National Cancer Institute estimated that around 1,806,590 new cancer cases were diagnosed in 2020, and 606,520 people died from the disease in the US.
Further, with the rising number of health issues among people due to unhealthy lifestyles, there is an increase in serious critical illnesses such as cancer, heart attacks and others. However, health insurance does not cover a range of such critical illnesses for which consumers are purchasing critical health insurance to cover the cost of medical bills, hospitalization fees and other related costs. In addition, the rise in instances of several diseases, such as brain tumors and cardiovascular diseases, further increases the demand for critical illness policy. Therefore, the rising number of critical health issues among people is one of the major driving factors of the critical illness insurance market revenue.
Additionally, Critical illness coverage provides a smooth experience to the insured regarding cashless medical treatment for their illness. In addition, it offers peace of mind to the insured without worrying about paying the high cost of medical bills out of their pockets. The reimbursement process is very smooth, and can the insured can even be eligible for cashless treatment at the best hospital and receive the best possible treatment. Therefore, the peace of mind and the smooth process of reimbursement and cashless treatment offered under the critical illness insurance coverage will provide major lucrative opportunities for critical illness insurance market growth in the upcoming years.
However, an increase in the number of critical illness cases such as stroke, cancer, renal failure and heart attack has proved to be the main cause of awareness among people. The increasing cases of critical illness and more expenditure for the insurer and uninsured population are expected to drive the critical illness insurance industry.
The critical illness insurance market segmentation, based on product type, includes medical insurance, disease insurance, family insurance, and income protection insurance. The medical insurance segment held the majority share in 2023 of the Critical Illness Insurance market revenue. This is primarily owing to the growing development of new products by health insurance companies. Evolution in the market with the launch of new products by health insurers is creating a new trend in the market. Several companies are providing different policies, such as single disease packages that cover only one disease, which includes high blood pressure, diabetes, and cancer, that can be added to the regular critical illness insurance. However, family insurance is the fastest-growing category over the forecast period due to its cost-effectiveness as it provides cover to every family member on a single premium, driving the market growth of the critical illness insurance.
North America
Canada
Europe
Rest of Europe
Asia-Pacific
Rest of Asia-Pacific
Rest of the World
Latin America
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 233 billion |
| Market Size 2024 | USD 246.98 billion |
| Market Size 2032 | USD 418.38 billion |
| Compound Annual Growth Rate (CAGR) | 6% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018 & 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Product Type, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | China Life Insurance Company (China), Allianz (Germany), Ping An Insurance (China), Aviva (UK), Prudential (UK), Aegon (Netherlands), AXA (France), Sun Life Financial (Canada), Aflac Incorporated (US), Huaxia Life Insurance Co. (China), AIG (US), MetLife Services and Solutions, LLC (US) |
| Key Market Opportunities | growing awareness amongst the people and patients regarding the benefits of critical illness insurance |
| Key Market Dynamics | Various strategies by key players Increasing geriatric population and sedentary lifestyle |
Critical Illness Insurance Market Highlights:
Frequently Asked Questions (FAQ):
The critical illness insurance market size was valued at USD 233 Billion in 2023.
The critical illness insurance market is projected to grow at a CAGR of 6% during the forecast period, 2024-2032.
North America had the largest share of the market
The key players in the market are China Life Insurance Company (China), Allianz (Germany), Ping An Insurance (China), Aviva (UK), Prudential (UK), Aegon (Netherlands), AXA (France), and Sun Life Financial (Canada).
The medical insurance category dominated the market in 2023.
The heart attack had the largest share in the market.
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Assistant Manager He holds an experience of about 7+ years in market research and business consulting, working under the spectrum of life sciences and healthcare domains. rahul conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. his expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc. in addition to the above, his other responsibility includes strategic tracking of high growth markets & advising clients on the potential areas of focus they could direct their business initiatives
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