Critical Illness Insurance Global Market Report 2024

The critical illness insurance market size has grown rapidly in recent years. It will grow from $249.05 billion in 2023 to $286.98 billion in 2024 at a compound annual growth rate (CAGR) of 15.2%. The growth observed in the historical period within the critical illness insurance sector can be primarily attributed to several key factors. These include the escalating healthcare costs, advancements in medical technologies and treatments, increased awareness and educational efforts about critical illnesses, lifestyle factors affecting health, and the provision of critical illness insurance as part of employer benefits packages. These elements collectively contributed to the expansion and development of the critical illness insurance market during that time.

The critical illness insurance market size is expected to see rapidly grown in the next few years. It will grow to $451.59 billion in 2028 at a compound annual growth rate (CAGR) of 12.0%. The anticipated growth in the forecast period within the critical illness insurance sector is expected to be driven by several significant factors. These include the aging population leading to higher susceptibility to illnesses, increasing disease prevalence rates, the persistent challenge of high healthcare costs, a growing emphasis on personal financial planning involving health coverage, and ongoing technological advancements improving insurance offerings.

The global critical illness insurance market is witnessing growth due to the increased prevalence of severe diseases like cancer, heart attacks, and strokes. These illnesses often lead to significant treatment expenses, making critical illness insurance an essential means to alleviate financial burdens. Insurance providers offer lump-sum payouts upon diagnosis, aiding policyholders in managing treatment costs. For instance, the Centers for Disease Control and Prevention reported a substantial rise in weekly cancer-related COVID-19 deaths from 28 to 1,055 between January 2021 and January 2022, underscoring the need for such coverage.

The expansion of the critical illness insurance market is driven by the escalating healthcare expenditure. The rising costs in healthcare, represented by the total spending on healthcare-related services, are pivotal in supporting critical illness insurance. In Canada, healthcare expenditure surged to $331 billion in 2022, marking an increase from 7.6% in 2021. This surge in spending contributes to the growth of the critical illness insurance sector. A significant trend shaping the critical illness insurance market is the inclusion of a broader range of covered diseases. Insurance providers are extending coverage to encompass ailments like Alzheimer’s disease, multiple sclerosis, Parkinson’s disease, and motor neuron diseases alongside traditional covered illnesses. The Parkinson's Foundation estimates the number of individuals affected by Parkinson's disease in the US to reach 1.2 million by 2030, reflecting the increased inclusion of diverse critical illnesses in insurance policies.

Leading companies in the critical illness insurance domain are innovating by introducing new insurance policies to cater to larger customer bases, boost sales, and enhance revenue. These policies aim to provide financial protection upon diagnosis or treatment of critical illnesses. For instance, in October 2023, Huize Holding Limited and Junlong Life collaborated to launch the Guardian Critical Care No.6 policy. This new policy covers over 120 severe illnesses and includes features like multiple claims for diseases due to the same cause, ICU hospitalization benefits, and more, catering to the evolving needs of policyholders. Huize Holding Limited, a Chinese digital insurance provider, underscores the trend toward innovative insurance products in this sector.

In December 2022, Lloyds Banking Group, a prominent UK-based financial institution, completed the acquisition of Cavendish Online, a reputable protection business operating in the UK, for an undisclosed sum. This strategic acquisition is aimed at strengthening Lloyds Banking Group's consumer relationships and advancing its position in the protection market, with aspirations to become a top-three provider in this sector by 2025. Cavendish Online specializes in offering advised life insurance, critical illness coverage, and income protection services within the UK market.

Major companies operating in the critical illness insurance market include China Life Insurance Company Limited, Allianz SE, Ping An Insurance Company of China Ltd., Aviva PLC, Legal and General Group PLC, China Pacific Insurance Co. Ltd., Prudential PLC, New China Life Insurance Co. Ltd., Aegon NV, AXA SA, American International Group Inc., Sun Life Financial Inc., Aflac Inc., Huaxia Life Insurance Co., Ltd., MetLife Inc., Zurich Insurance Group Ltd., Hospitals Contribution Fund of Australia Limited, Dai-ichi Life Insurance Company Limited, UnitedHealthcare Inc., Liberty Mutual Group, Bajaj Allianz General Insurance Company Limited, Cigna Group, Future Generali India Insurance Company Limited, Royal London Mutual Insurance Society Limited, United HealthCare Services Inc., Plum Benefits Private Limited, Tata AIG General Insurance Company Limited, AmMetLife Insurance Berhad, Star Union Dai-ichi Life Insurance Company Ltd., Manulife Financial Corporation, Great-West Lifeco Inc., Canada Life Assurance Company, Chubb Limited, Assurity Life Insurance Company, Colonial Life and Accident Insurance Company, Mutual of Omaha, New York Life Insurance Company.

North America was the largest region in the critical illness insurance market in 2023. Asia-Pacific was the second largest region in the critical illness insurance market report. The regions covered in the critical illness insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa The countries covered in the critical illness insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

Within the critical illness insurance market, two primary types exist: individual insurance and family insurance. Family insurance extends coverage to all family members, including the policyholder. The policies can be structured with different payment models, such as monthly, quarterly, half-yearly, or yearly payments, and typically provide coverage for conditions like cancer, heart attack, stroke, and various other critical illnesses.

The critical illness insurance market research report is one of a series of new reports provides critical illness insurance market statistics, including critical illness insurance industry global market size, regional shares, competitors with critical illness insurance market share, detailed critical illness insurance market segments, market trends and opportunities, and any further data you may need to thrive in the critical illness insurance industry. This critical illness insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The critical illness insurance market consists of sales of critical illness insurance products by entities that are engaged in directly underwriting critical illness cover or a dread disease policy, which is an additional insurance coverage to cover those overruns where traditional health insurance may fall short. The insurance industry is categorized on the basis of the business model of the firms present in the industry. Some insurance firms may offer other services financial or otherwise. Contributions and premiums are set on the basis of actuarial calculations of probable payouts based on risk factors from experience tables and expected investment returns on reserves. The value of the market is based on the premiums paid by the insured. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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