Health Insurance Market - Forecasts from 2025 to 2030

The Global health insurance market is predicted to expand at a CAGR of 5.59% to account for US$4.39 trillion by 2030 from US$3.34 trillion in 2025.

The global health insurance market is driven by multiple factors, such as regulatory developments that help ensure quality and compliance in the sector. Further, the COVID-19 pandemic has emphasized the critical role of health insurance in strengthening the healthcare ecosystem. The market is also aided by increased government health expenditure, providing maximum benefits to end users. Government schemes such as Ayushman Bharat (Pradhan Mantri Jan Arogya Yojana) (AB PMJAY) in India aim at providing a health cover of 5 lakh per family per year for secondary and tertiary care hospitalization.

In this regard, the number of beneficiaries for the Ayushman Card has been increasing year on year basis. The trend indicates that there were 15,116,631 cards created in March 2023, and it peaked at 22,045,246 in March 2024. These figures indicate the expanding healthcare benefits to the overall population in India.

A major factor for the increase in the global health insurance market is the increase in chronic disease ailments amongst different age demographics. The health insurance offers medical and surgical expenses for a person who has taken this policy. As the economy is expanding in the regions of Asia-Pacific, Middle-East and Africa, people are becoming more aware of the medical insurance benefits and taking relative schemes.

Global health insurance market drivers

Growing risk of chronic disease ailments

The global health burden has increased as the number of people suffering from different chronic diseases, such as cardiovascular disease, diabetes, asthma, etc. has been increasing. The primary causes for the increased cases of such diseases have been poor lifestyles, consumption of unhealthy food, and living in a polluted environment.

According to the IDF (International Diabetes Federation), the estimated number of people (20-79 y) suffering from diabetes in Europe will be 67,000.0 (in thousands) by 2030 and 69,000.0 by 2045. This figure indicates the severity of the increasing chronic disease ailments in the region.

Global health insurance market Geographical outlooks

The United States in North America is expected to hold significant shares of theGlobal health insurance market.

In the United States, the rising penetration of chronic diseases among the population is a major factor expected to play a significant role in boosting the demand for Health Insurance in the coming years. For instance, according to the U.S. Centre For Disease and Control, Alzheimer's disease, which is known to be a major chronic neurodegenerative disease, accounts for around US$360 billion in terms of care-related costs. This is expected to rise to US$1,000 by 2050 in the United States. Further, more than 98 million adults have prediabetes, which puts the majority at risk of type 2 diabetes. This highlights lucrative prospects for market growth with increasing medical care expenses.

Further, the rising elderly population of the country will provide additional impetus for market growth. For instance, as per the estimates of the Population Reference Bureau, the number of Americans aged 65 years or older is projected to increase from 58 million in 2022 to nearly 82 million by 2050. This will reduce the cost burden for multiple chronic conditions among the elderly and thereby promote insurance products to handle healthcare expenses.

Additionally, the growing awareness pertaining to health insurance benefits will boost the growth of different types of health insurance solutions till the forecast period. For instance, as per the American Journal of Managed Care (AJMC), private health insurance spending is anticipated to rise by 11.1% by 2023, compared to 5.9% in 2022. Moreover, the out-of-pocket expenditure also witnessed an upward trend with an increase of around 7.9% in 2023 from 6.6% in 2022. These factors reflect favorable opportunity boosting demand for health insurance in the country in coming years.

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Report Coverage:

• Historical data & forecasts from 2022 to 2030
• Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
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The Global health insurance market is segmented and analyzed as below:

By Type

• Health Maintenance Organization (HMO) plans
• Preferred Provider Organization (PPO) plans
• Exclusive Provider Organization (EPO) plans
• Others

By Service Provider

• Public Sector
• Private Sector
• Stand-alone Providers

By Geography

• North America
• South America
• Europe
• Middle East and Africa
• Asia-Pacific