Personal Accident and Health Insurance Market

Personal Accident and Health Insurance Market Outlook 2031

The global personal accident and health insurance market size was USD XX Billion in 2022 and is likely to reach USD XX Billion by 2031, expanding at a CAGR of XX% during 2023–2031. The market is driven by the increasing awareness of health risks.

Growing emphasis on preventive healthcare measures is expected to boost the market during the assessment period. These measures encourage individuals to invest in health insurance for routine checkups and early intervention for various diseases. In addition, the unhealthy habits associated with the evolving modern lifestyle have significantly increased the problems of stress, hypertension, and other chronic ailments. This leads to a higher consideration for personal accident and health insurance, thereby driving the market.

• As per the information updated in March 2023 by the World Health Organization (WHO), around 1.28 billion people above 18 years of age have hypertension worldwide. The range of age is 30-79 years and the majority of people reside in under-developed or developing economies.

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Events such as pandemics or widespread health crises increase the need for insurance coverage. Other factors such as changing demographics and rapidly aging population play a vital role in raising the requirement for health insurance. As a result, the market is likely to experience significant propulsion in the coming years.

The COVID-19 pandemic boosted the market as it caused a major health crisis. People became increasingly aware of their health conditions, which in turn, dramatically spurred the demand for health insurance. Now, even though things have gotten better, the market still continues to grow at a significant pace and is likely to continue this trend during the projection period.

Impact of Artificial Intelligence (AI) on Personal Accident and Health Insurance Market

The use of artificial intelligence is likely to provide substantial propulsion to the personal accident and health insurance market. AI helps in claim processing through automation, reducing turnaround times and efficiency. Moreover, it enhances risk assessment by analyzing vast datasets, enabling insurers to offer highly personalized and accurate coverage. This benefits both, the policyholders and the insurance provider. With its increasing incorporation into the insurance system, AI is projected to fuel the market in the years to come.

Personal Accident and Health Insurance Market Dynamics

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Major Drivers

Increasing number of road accidents is expected to drive the market during the projection period. The number of accidents has raised significantly in recent years due to a large number of people owning automotive vehicles. This has resulted in a surge in life and nonlife insurance claims for health coverage and personal accidents. Moreover, factors such as the growing prevalence of reckless driving, overspeeding, and drunk driving or driving under the influence of drugs are leading to a high number of road accidents. This increases the demand for insurance, thereby boosting the market.

• As per the data provided by the Insurance Institute for Highway Safety (IIHS), there were around 39,508 lethal motor vehicle crashes in the year 2021. It has been estimated that close to 42,939 people died in these accidents.

Existing Restraints

Stringent regulatory compliance is likely to hamper the market during the forecast period. Government institutions enforce stringent regulations to ensure fair and transparent practices and promote market stability. For instance, the Affordable Care Act (ACA) in the US enhances access to health insurance and healthcare services, including coverage for pre-existing conditions. The Insurance Act in the UK regulates the conduct and disclosure of information by insurance providers, which may hinder the growth of the personal accident and health insurance market.

Emerging Opportunities

­Growing incorporation of wearables into the life insurance software metrics for customer engagement is anticipated to provide substantial expansion opportunities for the market. Sensor-based wearables are gaining popularity due to their real-time tracking of customers' physical activity levels, lifestyle habits, and food habits. Insurers can use this consumer data to enhance their services and personalize product offerings based on each customer's lifestyle. This can minimize risks and maximize profits for insurers, thereby driving the market during the forecast period.

Scope of the Personal Accident and Health Insurance 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.

Personal Accident and Health Insurance Market Segment Insights

Type Segment Analysis

Based on type, the personal accident and health insurance market is divided into personal accidental insurance and personal health insurance. The personal health insurance segment is projected to hold the major share of the market during the projection period as it provides financial coverage for medical expenses and offers a safety net for unexpected accidents and illnesses. This includes hospitalization costs, surgery expenses, and other medical expenses. It helps in reducing the financial burden on individuals and alleviates the worry of high medical costs. This is expected to boost the segment during the forecast period.

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Age Group Segment Analysis

On the basis of age group, the global market is segregated into adults, children, and senior citizens. The senior citizens segment is projected to register a high CAGR during the forecast period owing to the fact that the insurance provides adults financial security by covering hospitalization costs, medical expenses, and rehabilitation fees during unforeseen illnesses and accidents. Additionally, it provides benefits such as income protection or disability coverage, providing a comprehensive safety net for individuals and their families. The rapid rise in geriatric population is anticipated to spur this segment in the years to come.

• According to the data from the World Health Organization (WHO) updated in October 2022, the global geriatric population in 2020 was more than children below five years of age. By 2050, around 80% of the elderly population is anticipated to reside in underdeveloped and developing countries.

Regional Outlook

In terms of region, the global personal accident and health insurance market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to dominate the market during the projection period owing to factors such as a rapid rise in population and rising per capita income. The demand for automobiles in this region has significantly spurred in recent years. As more people are coming into possession of automotive vehicles, the incidents involving vehicular accidents have also risen significantly. Moreover, the increasing awareness about accidental and health insurance in developing economies such as India and China is projected to fuel the market in this region in the coming years.

North America is expected to experience significant growth in the market, as it has developed economies like the United States and Canada. Furthermore, due to the strong presence of several market players, a large number of insurance companies are offering personal accident insurance policies in this region. There has been a considerable rise in consumer awareness about the importance of such insurance policies. This is likely to fuel the market in this region during the assessment period.

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Segments

The personal accident and health insurance market has been segmented on the basis of

Type

• Personal Accidental Insurance
• Personal Health Insurance

Age Group

• Adults
• Children
• Senior Citizens

Region

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Sompo Holdings, Inc.
• Prudential Financial, Inc.
• Ping An Insurance (Group) Company of China, Ltd.
• Nippon Life Insurance Company of America
• Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München
• Metlife
• HDFC Bank Ltd.
• CVS Health
• Cigna Healthcare
• Bupa
• AXA
• Assicurazioni Generali S.p.A.
• American International Group, Inc.

Competitive Landscape

Key players competing in the global personal accident and health insurance market are Sompo Holdings, Inc.; Prudential Financial, Inc.; Ping An Insurance (Group) Company of China, Ltd.; Nippon Life Insurance Company of America; Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München; Metlife; HDFC Bank Ltd.; CVS Health; Cigna Healthcare; Bupa; AXA; Assicurazioni Generali S.p.A.; and American International Group, Inc.

These market players incorporate several development strategies such as partnerships, mergers, collaboration, product launches, acquisitions, and production expansion to expand their consumer base worldwide. For instance,

• In September 2023, Prudential Financial, Inc., one of the global market leaders, partnered with EvolutionIQ, an AI-based technology company. This has been done with the intention of augmenting Prudential’s disability claims, helping claimants recover and resume work.