Private Health Insurance: Thriving in a Trillion-Dollar Market
Private health insurance is poised for remarkable growth as it gobbles up an ever-growing slice of the pie within the global health insurance market. Private insurers’ revenues are at 1.3 trillion euro (US$1.37 trillion) already and are expected to double by 2025.
This is against the backdrop of the very healthy numbers for the global health insurance market as a whole, which is valued US$1.98 trillion in 2020 and expected to reach US$4.15 trillion by 2028, growing annually at 9.7%. Much of this growth will be contributed by private providers, which together account for highest compound annual growth rate during the forecast period.
Aggressive marketing, heightened pandemic-related health concerns, enhanced claims management, increased rural awareness, an ageing population, rising incomes, and escalating healthcare costs are all propelling this expansion.
In response, insurers have been introducing new services and tools to encompass the rising demand for personalized insurance, including the expansion of digital insurance platforms and telehealth services for remote convenience, and integrating mental health coverage.
As promising as the landscape seems, insurers can expect to face a variety of challenges, such as adapting business models to changing preferences quickly enough. Another issue separating the winners from the losers will be firms’ ability to research and strategically target high-growth regions.
Are businesses ready to seize the opportunities in the promising private health insurance market?
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