The health insurance industry is a dynamic and rapidly growing sector wherein a company pays for an insured person's healthcare costs related to injuries, illnesses, pregnancy, or preventative care in return for a monthly premium payment. It offers partial or complete coverage for numerous treatment expenses, such as hospitalization costs, medicines, doctor consultation fees, ambulance charges, and daycare. Health insurance has made it easier for insured individuals to access treatment via a cashless facility at the network hospitals while protecting them against financial losses caused by medical emergencies.
At present, health insurance is gaining immense traction across the globe due to the surging healthcare costs and the widespread prevalence of lifestyle diseases, such as diabetes, cancer, heart disorders, and kidney failure. Nowadays, employers are increasingly offering these insurance plans, wherein the premiums are partially paid by employees, and the remaining is covered by the organization. In addition, governing agencies of various nations are mandating companies to provide health insurance plans to their employees and are introducing stringent laws that make international health insurance mandatory for tourists. Moreover, the rising adoption of government health insurance programs or schemes offered at low premium rates has catalyzed market growth.
The health insurance industry has witnessed positive growth in recent years and is expected to expand further in the coming years. This can be attributed to the sudden coronavirus disease (COVID-19) outbreak worldwide that prompted various companies to cover employee expenses for COVID-19 treatment. The leading players in the health insurance market are focusing on digitizing claim processing and policy management. Furthermore, the increasing adoption of cloud-based services and high-speed internet that enable transparent communication between the involved parties is positively influencing the market growth. Apart from this, recent technological advancements, including the large-scale integration of Big Data analytics with health insurance, helps insurance companies diversify their models and strategies to identify the ever-evolving customer demand. Besides this, the rising utilization of predictive analysis and scenario-based modeling in the market aids insurance companies in making customized solutions for their diverse clientele at varied pricing options.
Rapid digitization of numerous processes in the health insurance market assists customers in comparing different plans offered by multiple vendors. This, in turn, facilitates transparent communication between insurers and companies and offers proper disclosure of pertinent data to help individuals make informed decisions. In line with this, the growing usage of social media platforms by key players in the market to promote their health insurance products to a broader customer base is also creating a positive outlook for the market.
Moreover, health insurance is gaining immense traction at different rates across the globe, with North America representing the leading health insurance market. This can be attributed to the increasing number of insurance companies in the region offering quality health products, rising incidences of chronic diseases, and growing health consciousness among the masses. Country-wise, the Indian health insurance market is experiencing steady growth owing to surging medical costs, the launch of numerous health insurance schemes for the economically weaker section of the country and improving healthcare infrastructure. The global health insurance market is highly competitive as the key players are rapidly adopting advanced technology for improved healthcare and novel strategies, such as expansions, mergers and acquisitions, partnerships, and collaborations, to gain a competitive edge. For instance, CVS Health Corporation recently acquired healthcare companies like Omnicare and Athena, Inc. to widen its product portfolio and transform the customer health experience. Currently, the health insurance industry is experiencing substantial growth and is anticipated to continue to expand in the coming years, propelled by numerous factors, including the rising popularity of family floater health insurance, surging consumer health consciousness, and the aging population.