Health Insurance Market Projected to Grow $4.47 Billion, Globally, at 4.4% CAGR, Says AMR (2024)

FAQs

What is the projected growth of health insurance? ›

14, 2024 (GLOBE NEWSWIRE) -- The global health insurance market size is projected to reach around USD 2.23 trillion by 2029 and is poised to grow at a CAGR of 7.4% between 2023 and 2032, as a result of the rising healthcare expenditure and extensive coverage benefits against multiple medical conditions.

United States Insurance Market is anticipated to exceed USD 3.71 Trillion by 2033, growing at a CAGR of 6.98% from 2023 to 2033.

In 2024, twenty-five million people are projected to enroll in nongroup insurance coverage, which is six million more than in 2023 (exhibit 1). Most of that increase is in Marketplace coverage, as Medicaid's continuous coverage provisions unwind and the enhanced Marketplace subsidies persist.

Health Insurance Coverage-Related Statistics

Approximately 514 million people across India were covered under health insurance schemes in 2021, which merely covers 37% of the people in the country. Nearly 400 million individuals in India have zero access to health insurance.

Increasing employment opportunities in health care over the next several years will be due in part to the state's aging population, the addition of over five million to those covered by health insurance as a result of the implementation of the 2010 Affordable Care Act, and technological advances in health care.

Why does my health plan premium keep going up? Health care costs for hospitals, doctors, prescription drugs and other health care services are increasing. This is due partly to inflation - how much more services cost one year versus the next.

Healthcare Services Market Size And Forecast

Healthcare Services Market size was valued at USD 13.31 Trillion in 2024 and is projected to reach USD 22.57 Trillion by 2031, growing at a CAGR of 8.27% from 2024 to 2031.

For large-cap companies, a CAGR in sales of 5-12% is good. Similarly, for small companies, a CAGR between 15% to 30% is good. On the other hand, start-up companies have a CAGR ranging between 100% to 500%. Also, such high growth rates in the early stages are not completely abnormal.

The U.S. healthcare staffing market size is calculated at USD 26.27 billion in 2024 and is expected to reach around USD 43.38 billion by 2033, expanding at a CAGR of 5.71% from 2024 to 2033.

Kaiser Permanente is the top health insurer in the nation for affordability, customer satisfaction, and trustworthiness, according to Insure.com.

How is the health insurance industry doing? ›

The health insurance industry reported a 6% decrease in an underwriting gain to over $17 billion from over $18 billion for the same period in the prior year. However, net income increased 6% to over $18 billion for the first six months of 2023 compared to the same period in the prior year.

The IRS announced that the 2024 health plan affordability threshold—which is used to determine if an employer's lowest-premium health plan meets the Affordable Care Act's (ACA's) affordability requirement—will be 8.39 percent of an employee's household income.

Among the top insurers in the health segment, New India Assurance has the largest market share of 17.83%, followed by Star Health with 12.18% and Oriental with 8.07%. Motor segment was the second largest segment and it accounted for 28.40% of the total general insurers' premium.

In 2022, the uninsured rate for the full population was 8.4 percent. In Q3 2023, the uninsured rate was 7.7 percent,4 which is not significantly different from the estimated uninsured rate of 7.4 percent for the first six months of 2023.

India spends approximately 4-5% of its total GDP in healthcare and ranks a dismal 112 in the global health scorecard. The United States spends 17% of its GDP on healthcare – the highest per capita healthcare expenditure in the world – and still lags in outcomes compared to other developed countries.

A record number of Americans with healthcare coverage — and their increased use of medical services — is expected to spur U.S. health spending to $4.8 trillion in 2023, according to new government projections.

Insurance market: positive outlook

Over the next five years (2024‒28), we forecast that total insurance premiums will grow by 7.1% in real terms, well above the global (2.4%), emerging (5.1%) and advanced (1.7%) market averages. At this rate, India will have the fastest growing insurance sector of the G20 countries.

Payers: Government segments are expected to be 65 percent larger than commercial segments by 2027. In 2022, overall payer profit pools were $60 billion. Looking ahead, we estimate EBITDA to grow to $78 billion by 2027, a 5 percent CAGR, as the market recovers and approaches historical trends.

Projected NHE, 2023-2032:

Over 2023-32 average NHE growth (5.6%) is projected to outpace that of average GDP growth (4.3%), resulting in an increase in the health spending share of GDP from 17.3 percent in 2022 to 19.7 percent in 2032. NHE spending is expected to have grown 7.5% in 2023, faster than GDP growth of 6.1%.