North America health insurance market accounted more than 33% revenue share in 2018 and is estimated to grow over the forecast period. Growing awareness regarding availability of health insurance policies having several benefits will drive the regional business growth. Furthermore, favorable regulatory landscape for health insurance companies in the U.S. positively influences industry growth.
Private segment of health insurance market was valued at over USD 530 billion in 2018 and will witness robust growth. It provides economic support to patients receiving treatment from quaternary, tertiary and secondary healthcare institutions. Moreover, private insurance plans also aim for imparting greater flexibility to customer for choosing doctors and treatments. Aforementioned factors will foster segmental growth over the coming years.
Hospitalization insurance accounted for more than 20% revenue share in 2018 and will show a significant CAGR by 2025. Insurance providers collaborate with major hospitals to provide reimbursement on expensive surgical procedures and advanced treatments. Introduction of special reimbursement policies by companies such as Cigna and Medicare for complete family health insurance having maximum coverage for diseases further boost the segmental growth.
Global Health Insurance Market is set to surpass USD 1.5 trillion by 2025; according to a new research report by Global Market Insights, Inc. Rising healthcare expenditures will augment the health insurance market growth in coming years. People suffering from cancer and other chronic conditions may require surgical procedures that adds up to healthcare expenses. For instance, according to American Cancer Society, as of 2018 new cases of cancer diagnosed were around 1.6 million in the U.S. alone. Increasing prevalence of chronic diseases coupled with rising healthcare expenditure is expected to boost industry growth. Moreover, patients that cannot afford surgical procedures and advanced treatment options opt for health insurance plans. Above-mentioned aspects surge the demand for health insurance policies.
Several government initiatives for providing people with effective health insurance policies in developing economies should foster business growth. For instance, National health insurance schemes such as Rashtriya Swasthiya Bima Yojana (RSBY) initiated by government of India provides benefits for the population below poverty line (BPL) that suppresses cost associated with hospitalization. Additionally, recently developed health insurance plans focus on offering coverage to BPL households in an economical manner such factors stimulate business growth. However, poor claim settlement track record system may create complications and restrict the industry growth.
Preferred Provider Organization (PPO) segment held over USD 200 billion revenue in 2018 and will witness robust growth during the analysis timeframe. Segment growth is attributed to low cost of the insurance plans offered by PPO. PPOs allow easy access to benefits of the scheme and individuals are also assigned with primary healthcare professional that reduces hospital visits for minor health issues. Above mentioned factors propel the segment growth.
Senior citizens segment of health insurance market will grow over 2% during the forecast timeline. Majority of geriatric population suffers from chronic diseases. Since, most of elderly people are dependent, they usually cannot afford expensive treatments. Therefore, increasing adoption of cost-effective public healthcare plans providing reimbursement on various procedures for elderly people that elevates the business growth.
Life insurance segment of health insurance market was valued at more than USD 400 billion in 2018 and will enhance robust growth. Numerous benefits such as lower premium, rising cash values augments the segmental growth. Life insurance offers different policies that are flexible in terms of policyholder’s needs. Moreover, investing in life insurance is an effective method of saving income tax that should positively impact its demand in foreseeable future.
Prominent industry players operating in Health Insurance market include Aetna, Anthem Health Insurance, Blue Cross Blue Shield Companies, Cigna, Humana, HCSC, Highmark, Kaiser Permanente, Wellcare and United Healthcare. Major players adopt strategies such as geographic expansion as well as collaboration to sustain competition in the market. For instance, in March 2019, WellCare collaborated with Centene. This collaboration will help in diversifying WellCare’s product portfolio. – PR Newswire