HEALTH INSURANCE MARKET ANALYSIS

Market Challenges And Opportunities

Global Health Insurance Market Drivers:

Rise in patient pool to underpin market growth

One of the key factors expected to augment the growth of the global health insurance market during the forecast period is the rise in global disease burden and rise in patient pool around the world. Health insurance is a type of insurance that covers medical expenses of the insured due to an illness or accident in exchange for a premium amount. Therefore, with the rise in patient pool, number of health insurance policies is also increasing. In March 2023, Go Digit General Insurance announced the launch of three new plan under the Digit Health Insurance Policy to cater to the newly evolved health insurance needs post the pandemic.

Growing geriatric population to drive market growth

Another factor which is driving the growth of the global health insurance market is the growing geriatric population around the world. For instance, growing geriatric population is responsible for the increasing disease burden worldwide, with a wide patient pool suffering from chronic diseases. Thus, players in the market are launching policies to cater to the geriatrics. The National Insurance Company (India) has launched Varistha Mediclaim Policy for senior citizens who are more prone to suffer from ailments and age-related illnesses. Moreover, the National Programme for the Health Care of Elderly is launched to address and improve the medical issues faced by elderlies.

Global Health Insurance Market Opportunities:

The outbreak of COVID-19 (pandemic) is expected to provide significant growth opportunities for players in the global health insurance market. For instance, the world population has realized the value of health insurance due to the pandemic. People have also timely realized the fact that health policy is the only way to be financially secure during the pandemic. The Insurance Regulatory and Development Authority of India (IRDAI) mandated/instructed health insurers to include COVID-19 coverage in all policyholders' regular health insurance plans. Thus, several insurers have been offering COVID-19 Health Insurance cover in their base plans.

Rise in awareness among people about health insurance and associated benefits is expected to offer lucrative growth opportunities for players in the health insurance market. For instance, customers in rural areas are becoming aware of health insurance comprehensive coverages. In April 2023, Royal Sundaram launched a new campaign called '#Don’tBeAClown' to promote the importance of general insurance, encouraging people to protect themselves and their assets by getting insured, highlighting the need for various types of insurance. A campaign aims to educate the public about the risks associated with not having adequate insurance coverage.

Global Health Insurance Market Restraints:

High premium cost to hinder growth of the market

One of the key factors expected to hamper the growth of the global health insurance market is the rise in health insurance premium cost. Health insurance companies have increased the premium cost due to the massive claim settlement and rise in healthcare expenses such as hospital admission charges, cost of medicines, and cost of other treatments. Furthermore, technological advances have led to the development of medical devices and drugs that are extremely expensive, which in turn increases the cost of treatment.    

Lack of awareness to hamper the growth of the market

Another factor which is hampering the growth of the global health insurance market is the lack of awareness among people about coverages included in health insurance policy. Insurance coverage is the primary function of a health insurance policy. People are not aware of the variety of services offered under them. According to the survey conducted in October 2019 by Policygenius, around 27.2% people are unsure about health insurance policy facility in the United States. Therefore, it is important to be aware about health insurance policy or coverage.