Global Private Health Insurance Market Analysis and Global Forecast 2022-2030

The global Private Health Insurance market size is projected to reach approximately $2.6 Trillion by 2030, at a CAGR of 7% from 2022 to 2030. Employing health insurance will help protect one against the potential financial burdens that can come with a medical emergency. Coverage includes expenses such as ambulance fees and doctor consultations. It also covers hospitalization, medicines, and daycare proceedings. Generally, the reimbursement is calculated using the original medical bills or the estimated cost to diagnose a disease. Health insurance helps with financial protection, allows easy access to treatment at network hospitals, and provides a cashless option. Apart from this, health insurance also provides many tax benefits for a wide variety of medical conditions. Many health insurance providers are now providing coverage for at-home disease diagnosis and treatment. With follow-up care handled by a doctor in one of their offices, this method of service is cost-effective.

COVID-19 Impact Analysis

During the COVID-19 outbreak, health insurance gained momentum due to the increase in the adoption of health insurance. The COVID-19 pandemic increased visibility into the Health Insurance industry and its importance to society. One of the concerns in the initial days of the pandemic was whether an insurance policy would be able to cover coronavirus infections. Governments around the world launched different health insurance plans and laws to provide relief to their citizens from the pandemic. In turn, this created a new mindset for people about health care insurance policies. Now more people are aware of the importance of their health insurance coverage and its benefits. Additionally, the market is projected to grow exponentially during the pandemic, owing to the rise in awareness and spread of coronavirus infection.

 

Market Dynamics

The Private Health Insurance market is expected to witness growth due to various factors. Rising health-care costs, increasing disposable income as well as increasing rates of chronic diseases, are driving the demand in the market. New acquisitions and mergers and the option to customize a policy to further propel the market growth. Risk of fraud claims and increasing healthcare policy premiums to hinder the market growth over the forecast period.

Drivers

⮚     Rising Geriatric Population in Developed and Developing Countries

The rise of the Geriatric population in developing countries and their aging profile is one of these very important factors which are influencing industry growth of Healthcare insurance. The elderly population is faced with many challenges; they have a high chance of developing chronic conditions and other diseases which often lead to death. In addition, people in the age group of 65 and above require continuous monitoring and medical attention. The elderly segment of the population is often struggling with finances and some cannot afford expensive medical treatments due to their age. They fall under the category of usually being considered unproductive. As a result, medical insurance with several policies could cause an increase in industry growth.

Restraint:

• Fraud Insurance Claims Coupled with High Health Insurance Premiums

Facilitated government regulations due to fraudulent insurance claims are restricting the growth of the Private Health Insurance Market. If accidents are falsely reported such as faking an injury, fake death claims, or lack of understanding of the importance of insurance, it might hurt the market. In addition, increases in healthcare costs, such as drug costs, hospital fees, and other treatments have led to an increase in premiums for businesses.

Opportunity:

⮚     Increasing Awareness about Health Insurance policies in Rural Areas

The market for health insurance is growing in rural areas at a faster rate. This has opened up the doors to many benefits such as reimbursing the insured person’s illness treatment cost and paying a lump sum amount in prolonged cases. Customers in rural areas are becoming much better at understanding insurance benefits. Health care expenses like in-patient hospitalization, pre-hospitalization, and post-hospitalization expenses are widely covered by health insurance plans. In addition, doctors and teachers have increased the awareness of healthcare insurance policies, which is driving the growth of the healthcare insurance market.

 

Segment Overview

By Type

Based on the Type, the Private Health Insurance market is segmented based on Medical Insurance and Critical Illness Insurance. The Medical Insurance segment is anticipated to account for the large market share owing to the increasing adoption of a sedentary lifestyle, the surging obese population with multiple health issues, and rising accidental care expenses both in developed markets and emerging economies. The increasing prevalence of chronic diseases such as cancer, cardiac diseases, diabetes, and others would support greater growth in this niche market.

 

By Network Providers

Based on the Network Provider, the Private Health Insurance market is segmented based on Preferred Provider Organizations (PPOs), and Point of Services (POS). The PPOs segment is anticipated to account for the large market share. PPOs are the most common health insurance plans as it’s possible to access a large network of providers with just one plan. They’re also marketed as providing “flexibility” when it comes to choosing your healthcare provider, so the policyholders don’t have to worry about choice paralysis. The POS segment held the second position owing to the low premiums compared to PPOs.

 

By Demographics

Based on Demographics, the global Private Health Insurance market has been divided into Minors, Adults, and Senior Citizens. The Adult segment is expected to hold the largest market share. Adults have a high risk of lifestyle diseases, which may make them more susceptible to health concerns in the future. Moreover, the population is becoming more prone to various diseases that require hospitalization. The Senior Citizen segment made the second-highest CAGR in the market for Private healthcare insurance. This is due to their increased vulnerability to chronic diseases which leads to an increased hospitalization rate.

 

By End-Use

Based on End-Use, the global Private Health Insurance market has been divided into Individual and Corporates. The Individuals segment is expected to hold the largest market share. The individual plans offer more benefits and thus provide much more value for the high premium. As a result, these plans are generally in higher demand and attract a lot of customers. Corporate insurance coverage is provided by the company but at a lower cost. This is because of its limited benefits while individual plans offer more comprehensive coverage. In addition, these types of insurance often become invalid once the employee leaves the job, making it difficult to guarantee the growth of this sector.

Global Private Health Insurance Market Share, by Segmentation

Regional Analysis

Based on region, the global Private Health Insurance market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. North America is projected to dominate the use of the Private Health Insurance market followed by the Asia-Pacific and Europe regions.

North America Market

The North American market is expected to be a dominant presence in the Private Health Insurance market. The presence of significant Insurance providers in the region accounts for the region’s largest market share. Also, in the United States, it is mandatory to have health care coverage under the Affordable Care Act. If a state did not comply, it would be penalized by the federal government

Asia-Pacific Market

The Asia Pacific region is forecast to experience accelerated growth Private Health Insurance market growth over the next few years. This increase in health care spending would be largely due to an increase in public and private health expenditures, as well as the penetration of insurance services rendered to rural and urban centers, along with favorable government policies. Middle-class consumers in the developing countries in the region are increasing the demand for insurance. Insurance providers are focusing more on protection-based products with accident and health policies over fee-based products in the region.

Competitive Landscape

The market comprises tier-1, tier-2, and local players. With their wide product portfolios, tier-1 and tier-2 players have a global reach. Because of their strategic innovations and broad regional presence, companies such as Cigna Corporation, AIA Insurance Group, UnitedHealth Group Inc., Allianz SE, Zurich Insurance Group Ltd., Express Scripts Holding Company, AXA, Aviva plc, Aetna, Inc., Apollo Munich Health Insurance, and International Medical Group, lead the global Private Health Insurance business. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as growth, product releases, and alliances.

Prominent Players:

• Cigna Corporation
• AIA Insurance Group
• UnitedHealth Group Inc.
• Allianz SE
• Zurich Insurance Group Ltd.
• Express Scripts Holding Company
• Apollo Munich Health Insurance
• International Medical Group

In November 2021, Oscar Health and Emory Healthcare partnered to create an innovative new product that will allow patients to connect with their doctors in the US. They will also be able to access additional healthcare perks through technology-connected services at home and on the go.

Scope of the Report

Global Private Health Insurance Market, by Type

• Medical Insurance
• Critical Illness Insurance

Global Private Health Insurance Market, by Network Provider

• Preferred Provider Organizations (PPOs)
• Point of Services (POS)

Global Private Health Insurance Market, by Demographics

• Minors
• Adults
• Senior Citizens

Global Private Health Insurance Market, by End-Use

• Individual
• Corporates

Global Private Health Insurance Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia Pacific
• Rest of the World

 

 

Parameters	Indicators
Market Size	2030: $ 2.6Trillion
CAGR	7% CAGR (2022-2030)
Base year	2021
Forecast Period	2022-2030
Historical Data	2020
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Type, Network Provider, Demographics, End-Use
Geographies Covered	North America, Europe, Asia-Pacific, Latin America, Middle East, Africa
Key Vendors	Cigna Corporation, AIA Insurance Group, UnitedHealth Group Inc., Allianz SE, Zurich Insurance Group Ltd., Express Scripts Holding Company, AXA, Aviva plc, Aetna, Inc., Apollo Munich Health Insurance, and International Medical Group
Key Market Opportunities	Increasing Awareness about Health Insurance policies in Rural Areas
Key Market Drivers	Rising Geriatric Population in Developed and Developing Countries

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Private Health Insurance market trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities in the future
• Private Health Insurance market historical market size for the year 2020, and forecast from 2021 to 2028
• Private Health Insurance market share analysis at each product level
• Competitor analysis with a detailed insight into its product segment, financial strength, and strategies adopted.
• Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
• To identify and understand the various factors involved in the global Private Health Insurance market affected by the pandemic
• To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.