Life and Health Insurance Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Life and Health Insurance Market size was estimated at USD 1.3 billion in 2023 and is projected to reach USD 6.1 billion in 2030 at a CAGR of 6.3% during the forecast period 2024-2030.

Life and Health Insurance protects insured individuals from financial losses due to medical emergencies. It covers costs such as ambulance fees, doctor consultations, hospitalization, medications, and day-care procedures. The pay-out is generally based on actual hospital expenses incurred using original medical bills or upon disease diagnosis without needing bill submissions. Additionally, Life and Health Insurance offers easy access to medical treatment through a cashless facility at the insurer's network hospitals. Beyond this, Life and Health Insurance provides tax advantages for a wide range of medical conditions. Many insurance companies now cover domiciliary care, which is medical supervision provided at home for specific diseases.

The rising prevalence of chronic diseases and increasing treatment costs are key drivers of the Life and Health Insurance Market's growth during the forecast period. Additionally, growing awareness, an increase in the number of offerings with evolved healthcare policies, and the introduction of new government schemes contribute to this growth. For instance, the Indian government offers schemes like Ayushman Bharat, Awaz Health Insurance Scheme, and Aam Aadmi Bima Yojana. In the United States, Medicare and Medicaid insurance are provided by federal and state governments, respectively. Other countries also offer various insurance plans for their citizens. Furthermore, the internet facilitates market growth by simplifying the purchasing and renewing process.

North America led the Life and Health Insurance Market in 2022. The higher penetration of insurance in North America has driven this segment's growth. Healthcare costs and expenditures are very high in North America, with many people relying on reimbursements for treatments. Approximately 65% of the U.S. population is estimated to suffer from one or more chronic conditions. Advanced healthcare infrastructure and improved access to healthcare facilities contribute to the high healthcare costs. Increased awareness about insurance benefits and a high literacy rate in the region are key factors behind the market's rapid growth.

Asia Pacific is expected to exhibit the highest growth rate during the forecast period. This region, home to the world's largest population, is experiencing rapid urbanization and growing penetration of insurance companies. Changing lifestyles, unhealthy eating habits, and rising obesity are major factors driving the prevalence of chronic diseases. Rising disposable income, improved internet access, increasing literacy rates, significant investments in advanced healthcare infrastructure, and growing awareness about health insurance are expected to drive the Asia Pacific Life and Health Insurance Market's growth in the coming years.

The COVID-19 pandemic has positively impacted the healthcare insurance industry, with a 50% rise in health policy queries. The pandemic has highlighted the importance of financial protection through health insurance, increasing health coverage penetration. Service providers are focusing on offering customized policies to attract and retain customers, especially the younger generation. Globally, many life insurance startups are addressing the demand for customizable on-demand insurance, enhancing customer experience and loyalty.

Delvens Industry Expert's Standpoint

The Life and Health Insurance market is poised for significant growth driven by escalating disease burdens and a rising global geriatric population. Chronic diseases such as cardiovascular ailments, respiratory conditions, neurological disorders, cancer, musculoskeletal issues, and diabetes are proliferating worldwide. Increasing awareness about the financial security offered by health insurance is a key factor fueling market expansion.

According to the GLOBOCAN report, 20.3 million new cancer cases and 11 million cancer-related deaths were reported globally in 2021. Cardiovascular diseases, constituting 38% of global deaths, underscore the critical need for comprehensive health coverage. Lifestyle factors like obesity, physical inactivity, tobacco and sugar consumption, and unhealthy diets further exacerbate chronic disease prevalence.

The cost of medical treatment is steep, potentially exhausting personal savings, highlighting the growing necessity for health insurance. Federal subsidies in the U.S. project substantial investments, with health insurance expected to reach $1.7 trillion for individuals under 62 by 2033. In the U.K., top insurers like Vitality, Bupa, and Aviva saw significant consumer growth in 2023.

Looking forward, the Life and Health Insurance market is expected to continue expanding as populations age and chronic disease rates climb. Innovations in insurance offerings, coupled with increasing digital accessibility, will likely enhance market penetration. Addressing these trends will be crucial in meeting global healthcare demands and ensuring financial protection against escalating medical costs.

Market Portfolio

Key Findings

• On the basis of Provider, Private Life and Health insurance providers offer a wide array of tailored products, including individual, family, and employer group plans, alongside specialized coverage options. Known for their innovation, these insurers swiftly adapt to market changes, introducing features like telemedicine, wellness programs, and personalized health tools. They boast extensive networks of healthcare providers, including hospitals and specialists, providing policyholders with diverse care options and bolstering the appeal of their insurance offerings.

• On the basis of Type, Lifetime coverage in Life and Health insurance provides policyholders with enduring security and peace of mind, ensuring their healthcare needs are met throughout their lives despite changing health conditions or age-related issues. It often features stable premium rates, allowing policyholders to budget consistently for healthcare expenses over the long term. Moreover, lifetime coverage typically includes comprehensive benefits such as coverage for major medical expenses, hospitalization, surgeries, and preventive care, offering a holistic solution to policyholders' healthcare requirements.

• On the basis of Plan Type, Medical insurance provides extensive coverage for healthcare services such as doctor visits, hospital stays, surgeries, prescription drugs, and preventive care, meeting essential needs for individuals and families. It serves as a crucial safety net against substantial healthcare costs and unexpected medical expenses, easing financial burdens. Additionally, medical insurance plans typically include coverage for preventive services like vaccinations, screenings, and wellness check-ups, promoting proactive healthcare practices. Encouraging preventive care facilitates early detection and treatment of health issues, contributing to better overall health outcomes for policyholders.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. North America held the largest share of the Life and Health Insurance Market, accounting for 42.0% of revenue in 2020. The region's dominance is bolstered by numerous insurance companies and the mandatory coverage requirement under the Affordable Care Act in the U.S.

Regional Analysis

North America to Dominate the Market

• North America dominates the market for Life and Health Insurance, driven by its large and affluent population in the United States and Canada. This demographic provides a substantial customer base for insurance providers, catering to diverse demographic needs. The region's healthcare systems, characterized by a mix of public and private providers, contribute to a robust insurance market. High healthcare costs in North America, covering medical treatments, prescription drugs, hospital stays, and specialized care, prompt individuals and businesses to seek insurance coverage. This mitigates the financial impact of healthcare expenses, further solidifying North America's dominance in the Life and Health Insurance sector.

Competitive Landscape

• Allianz
• UnitedHealth Group Inc.
• Anthem Inc.
• Aetna Inc.
• Cigna Corporation
• Humana Inc.
• Bupa Group
• AXA S.A.
• Zurich Insurance Group Ltd.
• Munich Re Group
• Ping An Insurance (Group) Company of China Ltd.
• China Life Insurance Company Limited
• Prudential plc
• MetLife Inc.
• Dai-ichi Life Holdings Inc.
• Manulife Financial Corporation
• Assicurazioni Generali S.p.A.
• Aviva plc
• AIA Group Limited
• The Chubb Corporation

Recent Developments

• In June 2022, Anthem Inc. finalized its acquisition of MMM Holdings Inc., encompassing its Medicare Advantage (MA) Plan, affiliated firms, and Medicaid plan. This acquisition enables Anthem to offer Medicare and Medicaid plans to Puerto Rico residents.
   
• In August 2022, Molina Healthcare Inc. and Cigna Corporation entered into a merger agreement, with Molina Healthcare acquiring Cigna's Texas Medicaid and Medicare-Medicaid Plan (MMP). This strategic merger enhances Molina Healthcare's market position and expands its healthcare services to a wider demographic.

Reasons to Acquire

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• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

Report Scope