Expanding Ageing Population Necessitates Health Insurance Coverage
With the constant increasing healthcare costs, and climbing disease prevalence, health insurance has become a necessity as it provides people with the financial backup at the time of medical emergencies. Having health insurance has been touted imperative as it secures one against a range of health problems, thereby offering the financial stability and peace of mind. The governments also acknowledge the significance of healthcare and offer tax exemption on health insurance policies. Health insurance is thus an integral part of financial planning. Moreover, corporate policies attract the most qualified candidates, makes a real company, an attractive employer, it shows the organisation cares. One of the main factors boosting health insurance market is thus the rising elderly population.
Rising Chronic Disease Prevalence Fuels Growth of Health Insurance Market
The need for health insurance policies among the elderly is growing since a significant portion of the population is living with at least one chronic condition, including heart disease, cancer, type 2 diabetes, and arthritis. Additionally, the number of patients with more than one chronic disease is growing, which is further driving the growth of health insurance market. According to the National Cancer Institute, approximately 1,806,590 new cancer cases will be diagnosed and 606,520 cancer-related deaths in the United States by 2020. For instance, according to the World Population Prospects, 1 in 11 individuals, or 9 percent of the global population, were over the age of 65 in 2019, and it's predicted that number would rise to 1 in 6 people, or 16 percent, by 2050. Growing chronic disease prevalence and an ageing population would boost market expansion. This would result in a rise in the number of persons choosing medical insurance and rising awareness.
Moreover, due to the rise in healthcare costs that can’t be afforded, especially by the elderly population, including the price of medications, hospital admission fees, and the cost of numerous medical treatments, insurance providers have raised the cost of insurance premiums. Additionally, most consumers worldwide have one or more chronic conditions, including diabetes, Alzheimer's, or heart disease. For the treatments of many chronic disorders, healthcare experts have imposed high costs. The high price of claim settlements thus remains a major impediment facing health insurance market.
PPOs Coverage Preferred over POS in Health Insurance Market
The market leader and expected to hold the highest share during the projection period is the preferred provider organisations (PPOs) category. They offer greater freedom in choosing hospitals, doctors, and comparable other benefits, which raises desirability for this network. Due to the lower premiums for point of service (POS) plans compared to PPOs, which encourages segmental growth, POS will remain the second-leading segment in health insurance market. Health maintenance organisations (HMOs) network providers provide them the freedom to select doctors from inside their network, and is one of the most affordable health insurances, which improves its appeal. Since fewer individuals are aware of this service and EPOs charge higher premiums than HMOs, their market share is smaller.
Robust Government Efforts Shape North America’s Health Insurance Market
During the projected period, North America is expected to dominate the global health insurance market. Government efforts to lower the cost of Medicare, and Medicaid insurance and expand the number of people covered by health plans are expected to accelerate regional expansion. Additionally, the pricey nature of medical supplies and the helpful healthcare reimbursement regulations in this area helps the market expand. 11.41 million people in the USA had registered through the health insurance markets as of April 14, 2020. In the foreseeable year, Europe is anticipated to be the second-largest market due to the strict government regulations requiring citizens to have at least one insurance health care policy. Additionally, the growing public awareness of the necessity for insurance policies would fuel market expansion in this area.
The market in Asia Pacific is predicted to develop at the fastest rate and exhibit the highest CAGR during the forecast period because private providers are becoming more prevalent there. State and federal governments are launching more programs. In addition, the prevalence of chronic diseases is rising, and populous nations like China, and India will help the market expand. Due to the low penetration of insurance companies in these countries, it is anticipated that the rising demands of Latin America and, the Middle East & Africa would account for smaller market shares during the forecast period. However, the government's measures to implement the Affordable Care Act will boost the number of people signing up for health coverage.
Global Health Insurance Market: Competitive Landscape
Businesses in the market are starting new partnerships, alliances, and collaborations and releasing new products. For instance, Foreign Medical Group, Inc. (IMG) expanded its product offerings in August 2020 to assist companies with the planning and research required for risk-free international travel. Unique, brand-new help services offered by the company were created to support clients as they establish plans for 2020 and beyond. This innovation enabled the company to survive and prosper during the pandemic.
On the other hand, Samsung Health will be integrated into the Vitality Program in June 2021, according to a statement from Vitality. This will give members more methods to track their exercise and enhance their health. Since members can link their Samsung Health profile to their Vitality Member Zone account to automatically capture daily steps and heart rate activity to earn Vitality activity points, the new partnership with Samsung will enable Android users to enjoy all the benefits of the Vitality Programme. Moreover, the International Competition Commission of India (CCI) authorised the purchase of Bharti AXA General Insurance Company Limited's (Bharti AXA) General Insurance Business by ICICI Lombard General Insurance Company Limited's (Bharti AXA November 2020. Through this acquisition, the business can offer various insurance products through distribution channels for health and accident insurance, vehicle insurance, and other insurance.
A few players in the Health Insurance market include Aetna Inc., Allianz, Ping An Insurance (Group) Company of China, Ltd., Aia Group Limited, Assicurazioni Generali S.P.A., Unitedhealth Group, Aviva, Axa, Cigna, and Zurich.
Global Health Insurance Market is Segmented as below:
By Distribution Channel
By Insurance Type
By End User Type
Key Elements Included In The Study: Global Health Insurance Market
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