The global health insurance technology market size was around USD XX Mn in 2022 and is likely to reach USD XX Mn by 2031, expanding at a CAGR of XX% during 2023–2031. Rising costs of medical services and increasing disposable income at a rapid pace are likely to drive the market.
Health insurance technology analysis the available data to help insurers to know their customers. It helps them to price and underwrite more accurately, and better identify fraudulent claims.
Health insurance is an agreement between the policyholder and the insurance company, in which the insurance company agrees to pay half or full medical expenses of the policyholder. These medical expenses depend on the monthly premium payment and the insurance plans chosen by the policyholder.
The two ways by which an insurance company compensates for medical expenses are cashless and reimbursement. In a cashless treatment, the policyholder does not need to pay any amount, as the insurance company pays the dues directly to the hospitals. However, in the reimbursement process, the policyholder needs to pay the expenses and then claim that amount from the insurance company.
Health insurance provides immediate financial help in case of a medical emergency that might occur due to an accident, injury, or illness. It comprises the costs of consultation, diagnostic testing, hospital stays, surgery, and medicines. It offers specialized coverage for critical illness and facilitates getting superior medical treatment without worrying about hefty medical bills.
The report finds that the COVID-19 pandemic created potential opportunities in the market. The outbreak of COVID-19 raised fear among the people, thus making them more health conscious. Furthermore, the costs of medical services increased during the pandemic. Thus, people have started investing in healthcare plans to avoid financial losses. As per the insurance aggregators, there has been a 30% increase in demand for health insurance in the beginning of the third wave.
Health Insurance Technology Market Dynamics
Major Drivers
Rising medical services cost at a rapid pace due to the improving healthcare infrastructure and the advanced treatment is expected to fuel the market during the projection period. Advanced treatment is costly and not everyone can avail it. Moreover, daycare procedures require one to stay in the hospitals for a short period of time. Thus, to reduce hospital charges the requirement for affordable coverage, which propels the market.
Increasing internet penetration activities and the growing usage of cloud-based services are likely to propel the market. Cloud computing technology offers several benefits to insurance companies in financial management and offers enhanced security. Rising adoption of smartphones and growing digitization are likely to further boost the market.
Mandatory provision of health insurance for the employees of private and public sectors, is anticipated to drive the market. Furthermore, favorable government policies encourage consumers to accept health insurance, thus boosting the market.
Existing Restraints
High cost of premium plans hinders the market to a certain level. In premium plans, policyholders need to pay premiums regularly to keep the insurance policy active, which everyone cannot avail. However, the population of rural areas is still not aware of the coverage offered by health insurance policies. Thus, the lack of knowledge about health insurance limits the market.
Emerging Opportunities
Growing requirement for customized policies offers lucrative opportunities in the market to create opportunities. People with low income cannot avail to pay the monthly premium. Thus, they demand for innovative payment options. Furthermore, the emergence of add-ons to provide coverage for daycare procedures is likely to lucrative prospects in the market.
Scope of the Health Insurance Technology Market Report
The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Health Insurance Technology Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Technology (Wearable Tech, Blockchain, Robotic Process Automation & Artificial Intelligence, Predictive & Behavioral Analytics, Application Programming Interface, Cloud Infrastructure, and Others), Offering (Consulting, Managed Service, and Support & Maintenance), Insurance Type (Self-plan and Family Floater Policy), Insurance Plan (Health Maintenance Organizations, Point of Service, Preferred Provider Organizations, Exclusive Provider Organizations, Indemnity Health Insurance, Health Saving Accounts, and Others), Service (Inpatient, Outpatient, Medical Assistance, and Others), Time Period (Life Insurance, Non-life Insurance, and Short-term Insurance), Distribution Channel (Direct Sales, Agents/Brokers, Banks, and Others), and Age Group (Minors, Adults, and Senior Citizens)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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AIA Group Limited; Allianz; Aviva; Assicurazioni Generali S.p.A.; Aetna Inc.; Centene Corporation; AXA; Ping An Insurance (Group) Company of China, Ltd.; UNITEDHEALTH GROUP; Now Health International; International Medical Group, Inc.; Elevance Health; Broadstone Corporate Benefits Limited; Cigna; HBF Health Limited; and Vhi Group
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Health Insurance Technology Market Segment Insights
In terms of technology, the health insurance technology market is divided into wearable tech, blockchain, robotic process automation & artificial intelligence, predictive & behavioral analytics, application programming interface, cloud infrastructure, and others. The robotics process automation (RPA) & artificial intelligence (AI) segment is anticipated to generate a major revenue share of the market during the projected period, owing to the ability to perform repetitive tasks in a short period of time.
RPA and AI increase accuracy and operation efficiency by interacting with customers to understand their needs and provide them with the appropriate coverage. Increasing demand for automation processes from insurance companies is likely to boost the segment.
The cloud infrastructure segment is estimated to expand at a high CAGR in the coming years, due to the growing requirement for analyzing and interpreting large volumes of data. It allows one to access data anytime from a remote location by offering enhanced security and flexibility.
In terms of offering, the market is fragmented into consulting, managed service, and support & maintenance. The support & maintenance segment is projected to grow at a significant pace during the projection period, owing to the rising demand for the automated process. This service includes claim processing and fraud detection, which helps insurers to manage their business.
On the basis of insurance type, the market is bifurcated into self-plan and family floater policy. The family floater policy segment is expected to expand at a significant pace during the projected period, as it provides coverage for the entire family. It acts as an umbrella for the whole family of the policyholder. Thus, the need to buy an individual policy reduces for each member.
Based on insurance plan, the market is divided into health maintenance organizations, point of service, preferred provider organizations, exclusive provider organizations, indemnity health insurance, health saving accounts, and others. The preferred provider organizations (PPOs) segment is anticipated to register a robust pace in the coming years, as it offers a large network of hospitals. This type of plan is flexible, as it helps consumers to choose any doctor according to their needs.
The point of service (POS) segment is projected to expand at a high CAGR during the forecast period, as it gives freedom to choose hospitals for treatment between in-network and out-of-network. It improves customer service, as it is a combination of preferred provider organization (PPO) and health maintenance organization (HMO). Thus, consumers can take advantage of services at the same time.
In terms of insurance service, the market is classified as inpatient, outpatient, medical assistance, and others. The inpatient treatment segment is estimated to expand at a significant growth rate during the assessment period, due to the rising demand for large cover limits. It covers overall charges that occur during the hospitalization, which include doctor fees, nursing charges, medicines fees, surgery charges, and room rent. However, the duration of hospitalizations needs to be more than 24 hours. Growing adoption of outpatient procedures is likely to boost the segment growth.
On the basis of time period, the health insurance technology market is segregated into life insurance, non-life insurance, and short-term insurance. The life insurance segment accounted for a key share of the market in 2021, and is expected to hold a large share of the market in the coming years, as it provides benefits for a lifetime. It provides financial security to the family of the insured person in the case of death of the insured person. Furthermore, this type of coverage helps working professionals to save taxes by investing in this insurance.
The short-term segment is projected to expand at a significant pace in the coming years, due to the increasing demand for affordable coverage from low-income people. It reduces medical costs in case of health emergencies. The segment is attributed to the low costs and high coverage offered by this type of insurance.
Based on distribution channel, the market is segregated into direct sales, agents/brokers, banks, and others. The agents/broker segment is expected to expand at a considerable CAGR during the projection period, owing to the growing requirement for customized services among consumers. It allows policyholders to choose the best coverage options based on their budget.
The direct sales segment is projected to grow quickly, as it improves the customer experience by offering immediate access to coverages. The segment growth is attributed to the increasing consumer preference toward web-based services.
On the basis of age group, the market is segmented into minors, adults, and senior citizens. The senior citizens segment is estimated to expand at a significant pace during the projection period, due to the growing geriatric population across the globe. Having health insurance is beneficial for senior citizens after retirement, as it allows free annual checkups and lifetime renewability. Furthermore, rising risks of ailments and repetitive hospital visits are likely to boost the segment.
In terms of region, the global health insurance technology market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to dominate the market during the assessment period, due to the high usage of life and non-life insurance in the region. Increasing population of chronic diseases and growing disposable income are likely to accelerate the market in the region.
The market in Asia Pacific is projected to grow at a significant pace in the coming years, due to the rising demand for short-term insurance in developing countries such as India and China. The growth of the market in the region is attributed to the increasing government initiatives to promote health insurance, growing accident rate, and mandatory provision of health insurance for private and public sector employees.
Segments
The global health insurance market has been segmented on the basis of
Technology
- Wearable Tech
- Blockchain
- Robotic Process Automation & Artificial Intelligence
- Predictive & Behavioral Analytics
- Application Programming Interface
- Cloud Infrastructure
- Others
Offering
- Consulting
- Managed Service
- Support & Maintenance
Insurance Type
- Self-plan
- Family Floater Policy
Insurance Plan
- Health Maintenance Organizations
- Point of Service
- Preferred Provider Organizations
- Exclusive Provider Organizations
- Indemnity Health Insurance
- Health Saving Accounts
- Others
Service
- Inpatient
- Outpatient
- Medical Assistance
- Others
Time Period
- Life Insurance
- Non-life Insurance
- Short-term Insurance
Distribution Channel
- Direct Sales
- Agents/Brokers
- Banks
- Others
Age Group
- Minors
- Adults
- Senior Citizens
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- AIA Group Limited
- Allianz
- Aviva
- Assicurazioni Generali S.p.A.
- Aetna Inc.
- Centene Corporation
- AXA
- Ping An Insurance (Group) Company of China, Ltd.
- UNITEDHEALTH GROUP
- Now Health International
- International Medical Group, Inc.
- Elevance Health
- Broadstone Corporate Benefits Limited
- Cigna
- HBF Health Limited
- Vhi Group
Competitive Landscape
Key players competing in the global health insurance technology market are AIA Group Limited; Allianz; Aviva; Assicurazioni Generali S.p.A.; Aetna Inc.; Centene Corporation; AXA; Ping An Insurance (Group) Company of China, Ltd.; UNITEDHEALTH GROUP; Now Health International; International Medical Group, Inc.; Elevance Health; Broadstone Corporate Benefits Limited; Cigna; HBF Health Limited; and Vhi Group.
Some of these major companies adopted development strategies including collaboration, acquisition, mergers, partnerships, and product launches to increase their market share. For instance,
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On July 7, 2021, Bajaj Allianz General Insurance Co. Ltd. entered into a strategic agreement with the Bank of India. Bajaj Allianz General Insurance Co. Ltd. provided personal lines of products through this agreement, which included health insurance, travel insurance, motor insurance, and home insurance to the bank’s customers in rural and urban areas of the country.
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