Health Insurance Market Research Report - Forecast till 2027

Health Insurance Market Research Report: Information by Demographics (Minor, Adult, Senior Citizens), by Type (Health Maintenance Organizations (HMOs), Exclusive Provider Organizations (EPOs), Point-Of-Service (POS) Plans and Preferred Provider Organizations), by Period (Lifetime Coverage and Term Insurance), by Service Providers (Public and Private) and by Region (Americas, Europe, Asia-Pacific and Middle East & Africa) - Forecast till 2027

ID: MRFR/HC/6755-HCR | February 2021 | Region: Global | 90 pages         

Health Insurance Market

Health Insurance Market size is expected to reach USD 4 Trillion at CAGR of 6% during the forecast period of 2020 to 2027.

Segmentation

By Demographics Minor Adult Senior Citizens
By Type Health Maintenance Organizations (HMOs) Exclusive Provider Organizations (EPOs) Point-Of-Service (POS) Plans and Preferred Provider Organizations
By Period Lifetime Coverage Term Insurance
By Service Providers Public Private

Key Players

  • Aetna Inc. (CVS Health Corporation)
  • AIA Group Limited
  • Allianz SE
  • Aviva Plc
  • Berkshire Hathaway Inc.
  • Cigna and Sirius
  • United Health Group

Drivers

  • cost-sharing requirements imposed by insurers
  • the prevalence of chronic diseases such as diabetes and hypertension
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Health Insurance Market Overview


The importance of health insurance is undeniable, which includes cost-effectiveness, security and stability. It also helps in reducing the risks associated with preventable diseases, injuries and accidents. The role of health insurance can be different depending on the situation and needs. Many companies offer different types of plans for individuals or businesses. They range from high deductible plans to more comprehensive ones with a cash payout for medical bills. 


Health Insurance Market size is expected to register a CAGR of 6% during the forecast period of 2020 to 2027 and will achieve USD 4.0 Trillion in 2027.


The concept behind health insurance was formulated by Thomas More in 1516 when he offered money to cover poor children from London workhouses. Health insurance is a type of insurance that provides policyholders with access to medical care in case of illness or injury. Health insurance companies provide three types of coverage:



  1. health care

  2. long term care

  3. accident or disability


 


COVID-19 Analysis of Health Insurance Market


With the uproar in a health crisis due to COVID-19, people are opting for health insurance in a large amount.  The rising cost of healthcare and rising insurance premiums have led to the trend of self-insurance for individuals and smaller companies. Many people are looking for alternative solutions to provide their employees with affordable healthcare coverage, with rising costs.


A multiple of known diseases has been increasing during the COVID-19 pandemic. This provides an opportunity for more people to enter the global health insurance market. Increasing awareness of the benefits of health insurance and improvement in claims management services are both driving the market growth. However, the lack of knowledge about coverages included in the health insurance policy and increase in health insurance premium cost are some things that limit the health insurance market opportunity.


Health Insurance Market Dynamics


Drivers:


Three primary drivers of healthcare costs are quality metrics, cost-sharing requirements imposed by insurers, the prevalence of chronic diseases such as diabetes and hypertension. Health care costs have been rising and led to a significant increase in health insurance rates. In some cases, insurance companies can be perceived as part of the problem. However, drivers of healthcare costs are not only insurers; they also include suppliers and patients.


The United States of America health insurance market is an integral part of the United States America economy and healthcare system. The industry has been expanding due to new drivers such as the ageing population and new technology. The growing demand for health care and increasing competition among providers has led to a high rate of inflation in the industry. This, in turn, has led to an increase in premiums, deductibles, co-pays, and out-of-pocket costs for consumers.


Opportunities:


The health insurance market is a large industry with a lot of growth opportunities. There are many new business models and innovations that have been introduced to make the industry more efficient and offer more value to the customers.


Healthcare technology is currently in its infancy stage but it will continue to grow in the coming years. It will help companies manage expenses, improve patient experience, and streamline processes to provide better service for its clients. The market is predicted to be worth US$ 3,396 Billion by 2021. It is expected to increase at a CAGR of 6.9% during that period between 2022 to 2026.


Restraints:


The health insurance market has been a long-standing issue for the U.S. To tackle this problem, we need to solve the root of the access cause and devise a way to address the shortcoming of being expensive.


To address these issues, we have seen a lot of companies trying out new ways for encouraging people to take advantage of their services and products. One example is how insurance startups have been turning their attention towards blockchain technology. The health insurance market has been experiencing a lot of restraint due to its high cost and lack of utilization. It has not yet been addressed by any specific company or startup. This has put it in a state where many companies are trying out new ways for tackling.


Challenges:


Health insurance coverage is a product that was not easy to sell. Businesses struggle with the high cost of healthcare, they often make employees work more hours to offset these costs.


For businesses to offer a more comprehensive health insurance plan, they had to take on a lot of risks. This resulted in a steady rise in premiums and a volatile pattern of demand.


Health insurance is not just for your family members anymore. Today, individuals are buying it as well and this has led to an increase in demand for insurers who are meeting this growing need.


Cumulative Growth Analysis:


Cumulative growth analysis of the health insurance market is a technique in which an analyst uses past data to predict the future. It helps to identify the factors that lead to Health Insurance Market growth or decline.


Health insurance is widely used by individuals and employers for medical care. Health insurance comprises two main categories, namely, private health insurance and public health insurance. While public health insurance is provided by government-sponsored agencies including Medicaid, Medicare, and TRICARE, private health insurers are privately-owned organizations that offer their services through self-registration processes.


Value Chain Analysis


Many people are struggling to gain access to affordable health insurance for their families. The reason why the cost of health insurance is so high is because of the complexity and lack of transparency in this industry. The market value chain can be divided into several segments, which are often referred to as channels. A channel is defined by three factors:


(1) what product or service it carries out


(2) how it carries out the product or service


(3) who benefits from it.


As part of the U.S healthcare system, many people design the health-insurance plans which are provided by companies like Blue Cross and Aetna. They use their skills to help other companies understand what makes a plan successful or not desirable for consumers. Key players of the Health Insurance Market are various organisations such as hospitals, professional services firms such as accountants and lawyers, employers such as Bahnges & Co LCCs /Momentum Worldwide Companies LLCs/, non-profit organisations like the National Coalition on Healthcare/Life Time.


Segment Overview


Service Segment:



  • The health insurance market is one of the most lucrative sectors in the business sector. It has a wide range of service segments and has a lucrative profit margin. The health services industry has been estimated to be worth $3 trillion, with private hospitals and nursing homes being some of the most profitable service providers in the country.

  • The global healthcare industry has grown quite rapidly in recent years. However, this has not been seen by many people positively. Many argue that the huge increase in health insurance premiums has made it unaffordable for them to avail of basic medical treatment. This will result in a high risk of death among the general population, if not dealt with properly.

  • Since there are many service segments within this market, it will be extremely difficult for anyone company to gain prominence here. Instead, they will have to rely on partnerships with other companies or focus on specific service segments rather than competing with each other for dominance over this entire market.


 


Types:



  • The first type of health insurance is what is known as a major medical plan. This plan covers a variety of common healthcare conditions and costs a fixed premium per year.

  • The second type of health insurance is an HMO. This plan offers some form of coverage but can require members to pay monthly premiums as well as coinsurance fees, which are the share you pay for covered services after your deductible has been met.

  • The third type of health insurance that we will be discussing here is what we call traditional or fee-for-service plans. These plans cover all the different types of healthcare services and cost less than other options, but they can limit how much coverage members have and sometimes require referrals to see certain doctors and specialists.


 


Regional Analysis


The U.S health care market has evolved significantly since it was introduced to the modern world. There are significant differences in what type of plans are available to residents depending on whether they reside in rural or urban areas, and how much coverage is provided by each plan for their healthcare needs. The health insurance market in North America, Europe, Asia-Pacific and Latin America is worth $400 billion. The market for health insurance in North America is expected to grow at a CAGR of 3%. As healthcare spending continues to increase in North America, Europe, Asia-Pacific and Latin America, insurers are increasingly turning towards technology to help them manage their risk.


Competitive Landscape


Health insurance companies compete for customer loyalty and profitability. Consumers are thinking about cheaper options, which lead to price wars. Some of these big corporations include



  • Aetna Inc. (CVS Health Corporation)

  • AIA Group Limited

  • Allianz SE

  • Aviva Plc

  • Berkshire Hathaway Inc.

  • Cigna and Sirius

  • United Health Group

  •  


The health insurance market has been witnessing a lot of changes in recent years. There are many factors responsible for such changes such as increased competition, reduced consumer cost, and continuous technological advancements.


Recent Developments


The health insurance market is expanding rapidly with the advent of new technologies. With tremendous changes in technology, people are able to stay healthy and live longer than ever before.


Despite the rapid changes, the health insurance market has still been facing challenges with unfulfilled expectations. One of the main issues has been a lack of compliance among companies which does not want to spend money on healthcare expenses.


The recent developments in the health insurance market include:



  • Access to healthcare is now possible without an insurer

  • New approaches that are more convenient for patients

  • Blockchain technology for cheaper and easier data sharing


 


Report Overview


 


The cost of healthcare has increased in recent years. A lot of this is the result of companies raising their rates to offset the rise in expenses, including medicines, hospital admission fees, and other treatments. In addition, most consumers across the globe have been infected with several chronic diseases such as heart disease, Alzheimer’s, and diabetes. Chronic diseases are costly to get rid of so healthcare professionals have been imposing huge costs on them. Therefore, insurance companies are responsible to address massive claim settlement costs. Without this, the market may never reach its potential.



  • Historic Period: 2015-2019

  • Base Year: 2028

  • Forecast Period: 2021-2028


Segmentation


 By Service


Health insurance is a service that provides financial protection in the event of a medical emergency. It allows you to have access to healthcare, buy medical insurance, and make payments for various treatments.


As the health care industry evolves, new businesses are entering this market to provide health insurance services. These small-scale insurers offer plans with much lower premiums and out-of-network coverage. An example of one such company is Republic Blue Cross which offers a low premium plan that doesn’t cover out-of-network medical expenses.


By Technology:


The health insurance market is one of the most important sectors in the US healthcare sector. The sector has seen many changes in recent years because of the rise of digital technologies. These technologies have transformed healthcare and made it more accessible than ever before.



Report Scope:
Report Attribute/Metric Details
  Market Size   2027: 4.0 Trillion
  CAGR   2020-2027: 6%
  Base Year   2019
  Forecast Period   2027
  Historical Data   2018
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Type, Term, Service Providers, And Region
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Allianz SE, IHI-Bupa, William Russell, Aetna, Blue Cross, Expacare, CIGNA, International SOS, MediCare International, Integra Global Health Limited, HealthCare International, MultiNational Underwriters
  Key Market Opportunities   Research & development in pharmaceuticals
  Key Market Drivers   Increasing participation of key players


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Frequently Asked Questions (FAQ) :

The approx size of Global health insurance market is 4.0 Trillion in 2027.

Allianz SE, IHI-Bupa, William Russell, Aetna, Blue Cross, Expacare, CIGNA, International SOS, MediCare International, Integra Global Health Limited, HealthCare International, MultiNational Underwriters

Increase in healthcare expenditure and advancement in the field of medicine are boosting market growth.

Poor claim settlement track record may limit market growth.

The health insurance market is projected to grow at a 4.1% CAGR between 2020-2027.

The Americas are predicted to have the largest share in the health insurance market.