Critical Illness Insurance Market Report 2025

This Critical Illness Insurance market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The critical illness insurance market size has grown rapidly in recent years. It will grow from $286.98 billion in 2024 to $330.36 billion in 2025 at a compound annual growth rate (CAGR) of 15.1%. The growth in the historic period can be attributed to healthcare costs, medical advances, awareness and education, lifestyle factors, employer benefits.

The critical illness insurance market size is expected to see rapid growth in the next few years. It will grow to $529.26 billion in 2029 at a compound annual growth rate (CAGR) of 12.5%. The growth in the forecast period can be attributed to aging population, disease prevalence, high healthcare costs, personal financial planning, technological advances. Major trends in the forecast period include digital transformation, customized coverage, heart disease coverage, multi-illness policies.

The rising incidence of critical diseases is fueling the growth of the global critical illness insurance market. The treatment costs associated with serious illnesses like cancer can be substantial, making critical illness insurance advantageous for alleviating the financial burden of these expenses. Insurance providers typically offer a lump-sum payment to policyholders upon the diagnosis of a critical illness. Other common critical illnesses include heart attacks, strokes, and coronary artery bypass surgery. For example, a report from the American Cancer Society in September 2024 indicated that by 2050, the number of cancer cases in men worldwide is expected to increase by 84%, from 10.3 million in 2022 to 19 million, while cancer-related deaths are projected to rise by 93%, from 5.4 million in 2022 to 10.5 million. Consequently, the increasing prevalence of critical illnesses is anticipated to drive the global critical illness insurance market forward.

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.

Critical illness policies serve as a form of health insurance that covers medical expenses in case of severe illnesses like cancer, organ transplant, heart attack, stroke, renal failure, paralysis, and other conditions specified within the policy. This coverage operates as a supplement to standard health insurance policies.

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 that 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.

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, Plum Benefits Private Limited, Tata AIG General Insurance Company Limited, AmMetLife Insurance Berhad, 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 2024. 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.

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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