DUBLIN, November 24, 2021 / PRNewswire / – The “Health insurance market – Forecasts from 2021 to 2026” the report was added to ResearchAndMarkets.com offer.
The global health insurance market is valued at US $ 79.254 billion for the year 2019 and is expected to grow at a CAGR of 4.71% to reach 109.383 billion US dollars in 2026.
Health Insurance is an insurance solution that covers the medical and surgical costs of a person who has taken out this contract. It works in two ways, either by reimbursing expenses incurred due to illness or injury, or by paying a specific amount directly to the care provider. Rising medical costs or healthcare expenses globally is driving the health insurance market.
In addition, the rapid growth of chronic diseases among the population across the world, such as heart disease, cancer, type 2 diabetes and arthritis, and the increase in the aging population have further contributed to the market expansion. However, the cost associated with health insurance can be a market constraint.
Increased healthcare spending to drive market growth.
The main driver of the market is the increase in healthcare spending. Medicare acts as a risk mitigation measure for consumers around the world. The increase in health spending by both individuals and governments is on the rise.
According to the report on global health expenditure published by the World Health Organization (WHO) on February 20, 2019, global health spending rose 6 percent in low- and middle-income countries and 4 percent in high-income countries. The Indian government, according to the Ministry of Finance, is seeking to increase public spending on health services from 1% to 2.5 to 3% of GDP, as planned in the country’s national health policy.
The United States Center for Medicare and Medicaid Services, in its report, estimated that national health spending was as high as $ 3.81 trillion in 2019 and moved to $ 4.01 trillion in 2020. CMS predicted that by 2028, health spending would reach $ 6.19 trillion, and would represent 19.7% of GDP, against 17.7% in 2018 in the United States. Rising healthcare spending indicates an opportunity in the health insurance market.
Increase chronic disease penetration to increase market demand.
The increasing penetration of chronic diseases among the population around the world, such as heart disease, cancer, type 2 diabetes and arthritis, and the increasing aging of the population have further contributed to the growth of the market.
As reported by the US National Center for Biotechnology Information, one in three adults lives with more than one chronic disease or multiple chronic diseases and results in excessive health burden and costs. The figure mentioned is close to three in four among older people residing in developed economies and is expected to increase significantly, with the proportion of patients with more than four conditions nearly doubling between 2015 and 2035 in the UK.
Increased awareness of health insurance benefits to facilitate market expansion.
The growing awareness of the benefits of Medicare is expected to further expand the size of the Medicare market. In addition, awareness among people living in rural areas is also increasing. According to the United States Center for Medicare and Medicaid Services, spending on private health insurance increased 3.7% to $ 1,195.1 billion in 2019, amounting to 31% of total national health expenditure. Especially due to the advent of the COVID-19 epidemic.
In June 2021, Exela Technologies, Inc., a global business process automation company, announced the extension and expansion of its partnership with specialty care insurance companies, PCH Global. This engagement leverages Exela’s powerful cloud-based digital exchange platform for PCH Global to expand the current deployment to approximately 3,800 Specialists as registered users within the client organization at using Exela’s proprietary workflow and rule engines across all aspects of the spectrum of health claims, including behavioral health.
In June 2021, Now Health International Group, an international provider of private medical insurance, announced a new program with Starr Insurance Companies, a global insurance company, to advance its growth plans in Europe. This program integrates Now Health International’s global presence and expertise in delivering high-quality international health insurance solutions and digital tools, with Starr’s long-standing global knowledge and ability to deliver solutions. personalized through Europe.
High cost and longer time to reimburse claims to curb market growth.
However, the high cost associated with health insurance, lack of knowledge about the coverages included in the health insurance policy, strict regulations, and the longer time frame for reimbursement of claims may hamper the growth of the health insurance market. health insurance.
Geographically, North America will dominate the market by holding the largest share during the forecast period due to the availability of multi-value health insurance policies, the provision of a favorable health insurance landscape in the United States and the presence of key market players in the region.
In addition, the increase in disposable income, the improvement of the standard health system and the increase in health expenditure are expected to have a positive impact on the health insurance market in the region. Asia Pacific.
- American Insurance Company of Zurich
- United Health Care Services Inc.
- Aviva life Insurance Company India Ltd
- Allianz Care
- AIA Group Limited
- Blue Cross Association Blue Shield
- China Life Insurance (Overseas) Company Limited
- Generali Group Company
- Health maintenance organization plans (HMO)
- Preferred Supplier Organization Plans (PPO)
- Exclusive Supplier Organization Plans (EPO)
By service provider
- Private sector
- Public sector
- Autonomous insurers
- North America
- United States
- South America
- Middle East and Africa
- Saudi Arabia
- United Arab Emirates
- Asia Pacific
- South Korea
For more information on this report, visit https://www.researchandmarkets.com/r/tguhko
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SOURCE Research and Markets