Health insurance - Worldwide | Statista Market Forecast (2024)

The private health insurance market caters to individuals and families seeking coverage beyond what government-sponsored health programs provide. In this distinct sector, several notable trends are reshaping the landscape of private health insurance, while key indicators offer insights into its performance and sustainability.

Trends on the market:

• Telemedicine Integration: Private health insurers are increasingly incorporating telemedicine services into their offerings. This trend allows policyholders to access medical care remotely, improving convenience and accessibility.
• Wellness and Preventive Health Packages: Insurers are emphasizing wellness and preventive health packages, offering policyholders access to gym memberships, wellness apps, and preventive health screenings to encourage healthier lifestyles.
• Personalized Health Plans: The focus is shifting towards personalized health insurance plans, tailored to individual health needs. Data-driven underwriting helps in customizing coverage and premiums based on policyholders' health profiles.
• Pharmaceutical Cost Containment: To manage rising drug costs, insurers are partnering with pharmacy benefit managers to negotiate lower drug prices and provide cost-effective prescription drug coverage.
• Digital Health Records and Data Security: Ensuring the security of digital health records is a top priority, with insurers investing in advanced cybersecurity measures to protect policyholders' sensitive health information.

Underlying indicators:

• Healthcare Costs and Utilization: Monitoring healthcare costs and utilization patterns helps assess the financial health of private health insurers. Changes in healthcare demand and cost trends affect premium pricing.
• Regulatory Compliance: Staying compliant with evolving healthcare regulations and privacy laws is vital for private health insurers to operate within legal boundaries and adapt to changing healthcare landscapes.
• Provider Networks: The size and quality of provider networks play a pivotal role in policyholder satisfaction. Insurers must ensure their networks meet the needs and expectations of their customers.
• Customer Retention and Acquisition: Tracking customer retention and acquisition rates is essential in understanding the competitiveness of private health insurance products and the effectiveness of marketing and customer service efforts.
• Preventive Health Measures: The adoption of preventive health measures and wellness programs among policyholders can influence claims experience and long-term health outcomes, thus affecting insurers' profitability.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.