Hospital Daily Cash Benefit Insurance Market Report 2025

The hospital daily cash benefit insurance market size has grown rapidly in recent years. It will grow from $52.19 billion in 2024 to $58.32 billion in 2025 at a compound annual growth rate (CAGR) of 11.8%. The growth in the historic period can be attributed to rising out-of-pocket healthcare expenditure, increasing healthcare costs, and aging population.

The hospital daily cash benefit insurance market size is expected to see rapid growth in the next few years. It will grow to $94.9 billion in 2029 at a compound annual growth rate (CAGR) of 12.9%. The growth in the forecast period can be attributed to growing demand for health insurance policies, increased awareness about the benefits of insurance coverage and rise in chronic diseases and disabilities. Major trends in the forecast period include introduction of hospital indemnity insurance programs, focus on launch of home treatment programs strategic partnerships and collaborations among market players, use of artificial intelligence to improve insurance claims process.

The increasing out-of-pocket healthcare expenditure is anticipated to boost the market for hospital daily cash benefit insurance. Out-of-pocket payments (OOPs) refer to direct payments individuals make to healthcare providers at the time they receive services. For example, in 2022, the Office for National Statistics, a UK-based national statistics organization focused on epilepsy, reported that UK healthcare expenditure reached approximately $354.88 billion (£283 billion), reflecting a nominal increase of 0.7% compared to 2021. During hospital stays, out-of-pocket expenses can include user fees, medication, diagnostic tests, procedure charges, transportation, informal fees, and other costs that must be covered by the insured. Hospital daily cash benefit insurance provides a fixed amount to the insured during their hospital stay, which can be used at their discretion. Therefore, the rise in out-of-pocket healthcare spending supports the growth of the hospital daily cash benefit insurance market.

The surge in hospitalization rates is anticipated to further propel the growth of the hospital daily cash benefits insurance market. Hospitalization involves admitting a patient to a healthcare facility for medical treatment, care, or observation. The heightened demand for healthcare services due to increased hospitalization rates creates opportunities for insurance providers to offer hospital daily cash benefit insurance policies, thereby expanding market reach. According to an October 2023 report by the Centers for Disease Control and Prevention, individuals aged 65 years and older accounted for 62.9% of all hospitalizations related to COVID-19 between January and August 2023. The hospitalization rates for adults aged 65 years and older more than doubled, increasing from 6.8 per 100,000 in the week ending on July 15 to 16.4 per 100,000 in the week ending on August 26, 2023. Hence, the heightened hospitalization rates drive the growth of the hospital daily cash benefits insurance market.

Major players in the hospital daily cash benefits insurance market are introducing new products, such as hospital indemnity offerings, to cater to larger customer bases, boost sales, and enhance revenue. Hospital indemnity products, commonly known as hospital indemnity insurance, constitute a form of supplementary health insurance that guarantees policyholders fixed, predetermined daily cash payments during hospitalization resulting from illness or injury. For instance, in September 2022, Combined Insurance, a US-based insurance company, unveiled Hospital Champion - a newly tailored hospital indemnity insurance product. Specifically crafted to meet the needs of small businesses, this product stands out by not only aiding employers in attracting and retaining a talented workforce but also by providing employees with a heightened sense of security and peace of mind, a crucial consideration in today's environment.

Leading companies in the hospital daily cash benefits insurance market are concentrating on launching cash plans that offer financial assistance to policyholders during hospitalization, aiding them in covering out-of-pocket expenses not usually addressed by standard health insurance policies. Cash plans are insurance products that provide policyholders with a fixed cash payout for each day of hospitalization, irrespective of the actual medical costs incurred. This plan is specifically designed to alleviate financial worries related to hospital stays and improve access to health insurance. For instance, in July 2024, Axa S.A., a France-based insurance company, introduced the CareForAll Hospital Cash Plan, which offers straightforward coverage for hospital admissions. Policyholders are eligible to receive $130 (HK$1,000) per day for inpatient stays, with a maximum coverage limit of 120 days each policy year. For international hospitalizations, this benefit is adjusted to $65 (HK$500) per day. The plan requires customers to respond to only three health questions regarding their conditions over the past two years, removing the need for medical examinations.

In December 2022, Medical Mutual of Ohio, a US-based health insurance company, completed the acquisition of Reserve National Insurance Company for $90 million. This strategic move aims to fortify Medical Mutual's market position, offering an immediate expansion of its product portfolio. The acquisition is expected to enable Kemper to reinforce its focus and allocate more resources to property casualty and life insurance businesses, enhancing its sustained competitive advantages and overall value for stakeholders. Reserve National Insurance Company is a US-based insurance company.

Major companies operating in the hospital daily cash benefit insurance market include Cigna Corporation, CVS Health (Aetna), Allianz SE, AXA, Assicurazioni Generali S.p.A., UnitedHealth Group Inc., Zurich Insurance Group Ltd., AIA Insurance Group, Aviva plc, Star Health Insurance, Apollo Munich Health Insurance, ICICI Lombard General Insurance Company Limited, HDFC ERGO General Insurance Company Limited, Bajaj Allianz General Insurance Company Limited, Reliance General Insurance Company Limited, Bharti AXA General Insurance Company Limited, China Life Insurance Company Limited, Ping An Insurance (Group), Bupa, DKV Seguros, Bulstrad, Omniasig, Generali Group, Vienna Insurance Group, Czech Insurance Company, Aflac, Colonial Life, Manulife Financial, Sun Life Financial, Mapfre Insurance, Inbursa, MetLife, Humana of Omaha, Allstate, UnitedHealthcare Service LLC, Guardian Life Insurance Company of America, Bradesco Seguros, Porto Seguro S.A., SulAmérica Seguros, Sancor Seguros, La Caja Seguros, Consorcio Nacional de Seguros, Banco de Chile Seguros, Seguros Bolívar, Sura Seguros, Liberty Seguros Colombia, Rimac Seguros y Reaseguros, La Positiva Seguros, Harel Insurance Company, Clal Insurance, Daman National Health Insurance Company, Tawuniya, QIC Group, Doha Insurance Group, Anadolu Insurance Company, Aksigorta, Sanlam Group, Old Mutual, African Life Assurance, Liberty Group, Britam Holding PLC.

North America was the largest region in the hospital daily cash benefit insurance market share in 2024. Asia-Pacific was the second largest market in global hospital daily cash benefit insurance market. The regions covered in the hospital daily cash benefit insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the hospital daily cash benefit insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

Hospital daily cash benefit insurance provides cash payouts during your hospital stay and is not designed to replace comprehensive or major medical coverage. Instead, its purpose is to assist you in covering additional costs that may not be addressed by your other insurance.

The primary types of hospital daily cash benefit insurance include a rider, standalone cover, and being part of health insurance. The hospital cash rider, considered a rider, offers a fixed benefit to the policyholder. Coverage terms may vary, including options for lifetime coverage and term insurance. The benefits encompass emergency admission, coverage for accidents, medical treatment, and surgery, with service providers being both public and private.

The hospital daily cash benefit research report is one of a series of new reports that provides hospital daily cash benefit statistics, including hospital daily cash benefit industry global market size, regional shares, competitors with hospital daily cash benefit share, detailed hospital daily cash benefit segments, market trends and opportunities, and any further data you may need to thrive in the hospital daily cash benefit industry. This hospital daily cash benefit 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 hospital daily cash benefit insurance market consists of sales of hospital daily cash benefit insurance products by entities that are engaged in directly underwriting daily hospital cash plans that provide a lump sum amount in case of hospitalization and this amount can be used as per the liberty of the insured. 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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