The global health insurance market is growing at a high CAGR due to the increasing prevalence of chronic diseases and the high cost of treatment. In addition, the market is driven by an increasing number of injuries and accidents and increasing awareness about the benefits of the policy.
The rising cost of health services in connection with the increasing prevalence of diabetes, cancer, stroke, and kidney failure is one of the key factors escalating the demand for health insurance worldwide. In addition, the governing bodies of several countries require employers to provide health insurance to their employees. These agencies also enforce laws that mandate international health insurance for tourists.
In addition, the growing geriatric population encourages the adoption of government health insurance programs or schemes offered at low premiums. Growing health awareness and improving healthcare infrastructure are other factors boosting the market growth. In addition, various companies provide coverage for medical expenses incurred during the treatment of the coronavirus disease (COVID-19). They are also focusing on digitizing claims processing and policy management, which is expected to positively impact the market in the coming years
The market is further driven by the widespread adoption of social media for promoting health insurance products by various players. Social media platforms provide them with a diverse customer reach, which is expected to provide numerous growth opportunities for the players. In addition, the digitization of various processes in the health insurance market also helps customers compare multiple plans offered by multiple vendors. This enables transparent communication between insurers and companies and provides effective disclosure of relevant information that will ultimately help individuals make informed decisions, thus creating a positive market outlook.
The growing integration of health insurance with Big Data analytics is helping insurers diversify their models and strategies in an effort to recognize ever-evolving consumer demand. The increasing adoption of predictive analytics and scenario-based modeling in the market also allows companies to design customized solutions for their clientele at different price options.
COVID-19 impact on the global health insurance market
Due to high medical expenses and increased awareness of the benefits of health insurance, the global health crisis caused by the coronavirus has accelerated the demand for comprehensive health insurance policies specific to COVID-19 among individuals. Moreover, with the increasing incidence of COVID-19 cases and uncertainty regarding the health of patients, the demand for health insurance has witnessed a surge during the pandemic. For example, before the pandemic, only 13% of Britons had private health insurance, but the rise in the number of young people buying health insurance has seen the average age falling from 40 to 33 by 2020. affected by the coronavirus, many countries have implemented a wide range of health insurance policies and laws to provide assistance to their citizens. So the pandemic has also changed people’s attitudes towards medical and health insurance policies and they have come to know the importance and benefits of these policies.
In addition, many insurance companies have launched coronavirus health insurance to take advantage of the market opportunity and offer help in the treatment of COVID-19. This has proven to be a major driver of market growth. In addition, the prevalence of other health problems also saw a sharp increase during this period, which drove the health insurance market during the forecast period.
High demand for individual insurance policies is driving the global health insurance market
Based on types of coverage, the health insurance market is grouped into individual and family segments. The individual cover segment holds the largest share of the health insurance market due to the growing number of adults opting for health insurance. Moreover, the increasing prevalence of various chronic diseases such as diabetes, liver disease, heart disease, etc., among the adult population is a major driver of the individual coverage segment. On the other hand, the family cover segment is also popular, especially in developed countries, as this type of policy facilitates tax savings, which proves to be economical.
The COVID-19 pandemic has made the entire world sit up and realize that medical needs are unpredictable and can cause a financial shock that is difficult to manage. With high infection rates and no successful vaccine yet, people have begun to understand the importance of having a good health insurance plan. In addition, with the rising cost of medical expenses, access to a good medical facility and the cost of hospitalization can be costly. Therefore, getting health insurance for yourself and your family can provide the extra protection you need in times like these. Aside from the obvious benefits of having the financial security to take care of your loved ones, a health insurance plan is very helpful when it comes to beating medical care inflation.
– Amrin Ahmed