Between the years 2016 and 2020, the Global Health Insurance Market will experience an impressive compound annual growth rate of 11 percent. This staggering amount of growth is expected to be largely fueled by the increase in chronic diseases worldwide, including cancer, heart disease and type 2 diabetes.
Health insurance is a form of insurance coverage that pays for the cost of the insured individual’s medical expenses. Based on the type of health insurance coverage an individual has, he or she may pay for healthcare-related costs out of pocket and then be reimbursed by the insurance provider, or the insured individual makes payments to the insurance provider.
In health insurance lingo, the term ‘provider’ refers to a hospital, clinic, doctor, laboratory, pharmacy or health care practitioner. The term ‘insured’ refers to the person who owns the health insurance policy or individual who is covered by the health insurance.
In countries that do not offer universal health care coverage, such as the United States, health insurance is often offered in an employer benefits package and is viewed as a perk of employment.
Factors Fueling the Growth of the Global Health Insurance Market
Between the years 2016 and 2020, there are a variety of factors that are expected to fuel the growth of the global health insurance market.
The leading factor that is expected to surge the growth of the health insurance industry in the coming years is the increase in chronic diseases on a global scale. It is projected that there will be a rise in specific chronic diseases, such as cancer, heart disease, arthritis and type 2 diabetes. These conditions have become quite common across the globe, and this had led to more people enrolling in health care policies.
Furthermore, health care plans that are sponsored by employers, which is a common practice in the United States, will also contribute to the growth of this market. Healthcare schemes that are employer-sponsored consistently lead to an increase in out of pocket costs. In the event the insured develops a chronic illness, he or she will be required to register with both private and government health insurance providers that offer solutions for the management of chronic diseases. In addition to providing insurance coverage, these programs also teach individuals about the care and maintenance of several diseases in order in an effort to improve their quality of life and lower the costs of health care.
Yet another factor that is expected to boost the size of the global health insurance market will be the focus on expense management by insurance companies. Several vendors will likely start to place keen interest on developing effective expense management strategies in order to attract more clients. This can be simplified by utilizing several different communication and distribution channels. The application of analytics will allow for both analysis and reporting capabilities. Moreover, it will also help to target patterns that are hidden in the data and foresee outcomes in the future.
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Projected Trends in the Global Healthcare Market
The adaptation of social media platforms by a number of insurance providers will become commonplace over the projected time period. Social media allows insurance companies to reach a large customer base. It also assists companies to effectively disclose information. This, in turn, will allow for more transparency within the healthcare system.
Not only are healthcare providers expected to launch campaigns related to new products on social media, but they are also projected to use social media as a way to gather feedback from customers, resolve issues, generate insights and even investigate cases of fraud.
Regional Segmentation of the Global Health Insurance Market
Between the years 2016 and 2020, the following regions are expected to see the largest growth in the global health insurance market:
- The Americas
- Asia Pacific
- The Middle East
The Americas will see the largest and fastest growth during the projected period, with a projected compound annual growth rate of 43 percent of the total market share. As a result of this growth, this region is also expected to dominate the global health insurance market during the forecasted period. Financial institutions own multiple health insurance providers in the Americas. These institutions use advanced technology in order to offer their customers customized solutions. This is expected to lead to an increase in insurance premiums, which will, in turn, increase the amount of individual expenditures on health insurance.
Asia Pacific is also expected to see large growth in the health insurance industry between 2016 and 2020. The growth of the population and the middle class, more interest in health care, and an increase in per capita income are all factors that are expected to fuel the growth of the global health insurance market in this region.
Top Vendors and Competitive Landscape of the Global Health Insurance Market
The global health insurance market is highly competitive. The majority of health care providers are consistently making developments and applying techniques that aim to boost the infrastructure of the health care market. These factors will lead to more innovative products that are related to the health insurance products.
The top health care providers are already beginning to make use of advanced technology in order to assist their customers with making decisions about purchasing various healthcare policies. Moreover, the government is offered public healthcare for its citizens in multiple developing countries. This will likely cause several private medical insurance providers to make their way into the market with greater funding mechanisms.
Between 2016 and 2020, the stringent norms related to the regulation of health insurance are expected to boost the size of the market. In order to expand their reach globally, several key vendors will begin focusing on joint ventures, as well as mergers and acquisitions.
There are several companies that are expected to be top vendors during the forecasted time period. These companies include AXA, Allianz, Aviva, United Healthcare and Zurich Insurance Group. AIA Insurance, the Aetna Foundation and Blue Cross Blue Shield are also expected to be leading vendors.