Global Health Insurance Market Size (By Provider: Public, Private; By Coverage Type: Term Insurance, Life-time Coverage; By Network Provider: Point of Service, Preferred Provider Organizations, Exclusive Provider Organizations; By Plan Type: Medical Insurance, Critical Illness Insurance, Family Floater Health Insurance, Others; By Age Group: Minor, Adults, Senior Citizen; By Distribution Channel) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024-2033

The global health insurance market size was exhibited at USD 2.19 trillion in 2023 and is projected to hit around USD 4.51 trillion by 2033, growing at a CAGR of 7.5% during the forecast period of 2024 to 2033.

Key Takeaways:

• North America accounted for 34% revenue share in 2023.
• By type, the critical illness insurance segment held a 39% revenue share in 2023.
• Lifetime coverage was the dominant segment in the global health insurance market, accounting for over 53% of the market share in 2023

Health Insurance Market by Overview 

The health insurance market plays a vital role in ensuring access to healthcare services for individuals and families across the globe. This sector encompasses a wide range of insurance products and services designed to mitigate the financial risks associated with medical expenses. In this overview, we'll explore the key aspects of the health insurance market, including its significance, major players, trends, and challenges.

Growth Factors

The health insurance market is anticipated to witness a rapid growth owing to the rising burden of diseases and growing geriatric population across the globe. The prevalence of various chronic diseases such as cardiovascular diseases, respiratory diseases, neurological diseases, cancer, musculoskeletal diseases, and diabetes is rising at a significant pace across the globe. The growing awareness among the population regarding the financial benefits of having health insurance is expected to drive the growth of the global health insurance market.

According to the GLOBOCAN report by the International Agency for Research on Cancer, around 19.3 million new cancer cases and around 10 million cancer related deaths were reported in the year 2020, across the globe. Cardiovascular diseases are the leading cause of deaths across the globe that accounted for 32% of the global death, as per the World Health Organization.

The rising obesity, physical inactivity, increased consumption of tobacco and sugar, increasing prevalence of smoking, and unhealthy food habits are the major causes behind the surging burden of chronic diseases across the globe. The cost of treatment is expensive and it can drain all the savings of an individual. Therefore, the rising financial literacy among the modern people and the easy availability of various types of health insurance providers are the significant factors behind the burgeoning demand for the health insurance.

• Under the federal government subsidies (United States), the amount of health insurance for people under age 65 is projected to be $1.6 trillion in 2032. Whereas the medicine and the children health insurance program is expected to account for about 42% of the total subsidies during the period of 2023-2032
• Vitality, Bupa and Aviva, top leading health insurance companies added 480,000 new consumers since the beginning of 2023 in the United Kingdom. Vitality Health Insurance has witnessed an overall increase of 20% in consumers in 2023 as compared to 2021.
• In between January- June 2023, approximately 61.4% people (all ages) in the United States had private health insurance coverage. Whereas 39.2% of people (all ages) had public health insurance coverage.
• According to the Commonwealth Fund, approximately 43% of working adults in the United States were insured in 2023. Which means, more than two in every five working adults had health insurance in 2023.
• Reliance Nippon Life Insurance, India had 2,396,976 policies in force as of 2023. The company's overall profit increased by 30% in 2023.
• Cigna Healthcare, one of the leading healthcare insurance providers stated that its overall consumer relationship grew by 2% at the end of 2023 and reached 189.7 million which was 185.6 in the year 2021.

Health Insurance Market Report Scope

Health Insurance Market Dynamics

• Rising Healthcare Costs:

One of the most significant dynamics influencing the health insurance market is the continuous rise in healthcare costs. Factors such as medical inflation, advances in medical technology, and an aging population contribute to escalating healthcare expenses. As a result, insurers face the challenge of balancing the need to provide comprehensive coverage with the imperative to control costs for both themselves and their policyholders. This dynamic puts pressure on insurance premiums, deductibles, and out-of-pocket expenses, making healthcare affordability a growing concern for individuals, employers, and governments alike.

• Regulatory Changes and Policy Reforms:

Another key dynamic shaping the health insurance market is the evolving regulatory landscape and policy reforms. Healthcare regulations vary significantly across countries and regions, with government intervention playing a significant role in shaping the structure and functioning of the health insurance industry. Policy changes, such as the implementation of the Affordable Care Act (ACA) in the United States, can have far-reaching implications for insurers, providers, and consumers, influencing coverage requirements, reimbursement mechanisms, and market dynamics.

Health Insurance Market Restraint

• Access Disparities:

One significant restraint in the health insurance market is the persistent disparities in access to coverage and healthcare services. Despite efforts to expand coverage through government-sponsored programs and employer-sponsored insurance, millions of individuals worldwide remain uninsured or underinsured, particularly among marginalized and underserved populations. Factors contributing to access disparities include socioeconomic status, geographic location, immigration status, and systemic barriers to healthcare access.

• Regulatory Uncertainty:

Another significant restraint in the health insurance market is regulatory uncertainty, driven by ongoing changes in healthcare regulations and policy reforms. Healthcare regulations are subject to frequent updates and revisions, influenced by political, economic, and social factors, as well as evolving healthcare priorities and demographic trends. Regulatory uncertainty creates challenges for insurers, providers, and consumers, leading to confusion, compliance burdens, and market volatility.

Health Insurance Market Opportunity

• Technological Advancements:

One significant opportunity in the health insurance market lies in leveraging technological advancements to enhance efficiency, improve customer experience, and drive innovation. The rapid evolution of technology, including artificial intelligence, data analytics, and telemedicine, presents new opportunities for insurers to transform their operations and offerings, positioning themselves for sustainable growth and competitive advantage.

• Aging Population and Chronic Disease Management:

Another significant opportunity in the health insurance market is the growing demand for coverage and services tailored to the needs of an aging population and individuals with chronic diseases. As life expectancy continues to increase and the prevalence of chronic conditions such as diabetes, heart disease, and cancer rises, there is a growing need for comprehensive health insurance solutions that address the unique healthcare needs and challenges of older adults and individuals with chronic illnesses.

Health Insurance Market Challenges

• Rising Healthcare Costs:

One of the most significant challenges facing the health insurance market is the persistent rise in healthcare costs. Factors such as medical inflation, advances in medical technology, and an aging population contribute to escalating healthcare expenses, placing strain on insurers, healthcare providers, employers, and consumers alike. The increasing cost of healthcare services and treatments drives up insurance premiums, deductibles, and out-of-pocket expenses, making health insurance coverage less affordable for individuals and families.

• Regulatory Uncertainty and Policy Changes:

Another key challenge in the health insurance market is regulatory uncertainty and frequent policy changes. Healthcare regulations are subject to constant evolution, driven by political, economic, and social factors, as well as changes in healthcare priorities and demographic trends. Regulatory uncertainty creates challenges for insurers in navigating compliance requirements, adapting their products and services, and anticipating the impacts on their business operations and financial performance.

Segments Insights:

Provider Insights

By provider, the public provider was the leading segment in the global health insurance market in 2023. In case of the public provider, the government act as the major insurance provider and the increased public trust and confidence on the government bodies regarding their funds is a prominent driver of the public provider segment. For instance, MEDICARE and MEDICAID services of the US Federal government and the Life Insurance Corporation of India are the well-known public providers of health insurance. Moreover, the regulatory changes regarding the reimbursement policies pertaining to the services acquired from the telehealth platforms is expected to foster the growth of the public provider segment in the forthcoming future.

The private provider is anticipated to exhibit the highest CAGR during the forecast period. The global health insurance market is flooded by the presence of numerous top global and domestic players. The aggressive marketing strategies and lucrative offers provided by them is gaining consumer attention rapidly. Furthermore, the rising adoption of digital technologies and adoption of hassle-free settlement procedures are the major factors that are expected to have a significant impact on the growth of the private providers segment. Moreover, the inefficiencies and delays in procedures associated with the public providers in solved in the private providers, which are fueling the growth of this segment.

Coverage Type Insights

Depending on the coverage type, the lifetime coverage was the dominant segment in the global health insurance market, accounting for over 53% of the market share in 2023. The lifetime coverage health insurance is more popular among the customers owing to the tax benefits associated with it.

The term insurance is anticipated to be the fastest-growing segment during the forecast period. The low cost and a wider range of benefits associated with the term insurances is fueling the adoption of the term health insurances among the consumers across the globe. Moreover, the regular product launches with addition of new benefits gains the consumer attraction and hence this segment is expected to be the fastest-growing.

Network Provider Insights

Depending on the network provider, the preferred provider organization was the leading segment that accounted for a market share of more than 27% in 2023. The preferred provider organizations have a huge variety and wider range of health insurances products to offer to the customers. It also offers choices among the hospitals and doctors to the customers. Therefore, the availability of wider range of options with the preferred provider organizations has made it the most dominating segment in the global health insurance market.

The point of sale is anticipated to be the most lucrative segment during the forecast period. The mixed features of the point of sale organizations have made it a popular choice among the customers. It includes the features of both the preferred provider organization and the health maintenance organization.

Regional Insights

North America led the global health insurance market in 2023. The market size of North America region was USD 965 billion in 2020. The higher penetration of the health insurance in North America has led to the growth of this segment. The healthcare costs and expenditure are very high in North America. In fact, most of the people depend on the reimbursements for receiving the treatments. Furthermore, the prevalence of chronic diseases is very high in the major market like U.S. It is estimated that approximately 60% of the U.S. population is suffering from one or more chronic conditions. The availability of advanced healthcare infrastructure and improved access to the advanced healthcare facilities are the major factors behind the high healthcare costs. The increased awareness among the population regarding the benefits of insurance policies and the high literacy rate in the region are the prominent factors behind the rapid growth of the health insurance market.

Asia Pacific is expected to exhibit the highest growth rate during the forecast period. The Asia Pacific region is the home to the world’s largest population. The rapid urbanization and growing penetration of the insurance companies is fueling the market growth. The changing lifestyle of the consumers, unhealthy eating habits, and rising obesity are the major factors behind the growing prevalence of chronic diseases in the region. The rising disposable income, improving access to the internet, rising literacy rates, increasing investments on the development of advanced healthcare infrastructure, and rising awareness regarding the health insurances among the population are the most prominent factors that are expected to drive the growth of the Asia Pacific health insurance market in the forthcoming years.

Key Developments in the Marketplace:

• In June 2018, UniCreditentered into a partnership agreement with the Allianz Group in Europe. This agreement aimed at integrating the Allianz’s insurance expertise with UniCredit’s banking franchise in European market.
• 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.

The health insurance market is highly fragmented with the presence of numerous top players in the market. These market players are constantly engaged in various developmental strategies such as mergers, joint ventures, business expansion, acquisitions, partnerships, collaborations, and new product launches to strengthen their position and expand their market share.

Some of the prominent players in the health insurance market include:

• Cigna Corporation
• CVS Health Corporation
• Allianz
• Centene Corporation
• United Healthcare Services, Inc.
• WellCare Health Plans, Inc.
• National Insurance Company Limited
• Bupa Global
• Humana, Inc.
• AIA Group Limited

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the global health insurance market.

By Provider

• Public
• Private

By Coverage Type

• Term Insurance
• Life-time Coverage

By Network Provider

• Point of Service
• Preferred Provider Organizations
• Exclusive Provider Organizations
• Health Maintenance Organizations

By Plan Type

• Medical Insurance
• Critical Illness Insurance
• Family Floater Health Insurance
• Others

By Age Group

• Minor
• Adults
• Senior Citizen

By Distribution Channel

• Direst Sales
• Brokers/Agents
• Banks
• Others

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)