According to the Market Statsville Group (MSG), the global supplemental health insurance market size is expected to grow from USD xx million in 2022 to USD xx million by 2033, growing at a CAGR of 5.4% from 2023 to 2033. A supplementary insurance plan that assists in the payment of healthcare bills not covered by a person's primary health insurance plan. Copayments, coinsurance, and deductibles are examples of these costs. Supplemental health insurance includes vision, dental, hospital, accident, disability, long-term care, and Medicare supplemental plans, among others. Supplemental health insurance policies are also available for specific ailments such as cancer, stroke, and kidney failure. Food, medicine, transportation, and other expenditures associated with an illness or injury may be covered by supplemental health insurance.
Supplemental health plans may pay benefits to the insured person or the health care provider. The amount paid and how it's paid out will depend on the plan. These are a few types of supplemental health policies and how they work. During the COVID-19 pandemic, an increase in the incidence of various diseases, such as cancer, dengue fever, and diabetes, is thought to be a major reason driving the global supplemental health insurance industry growth.
Supplemental health insurance is a plan that pays for expenses not covered by basic health insurance. It may provide further protection. It may also pay for coinsurance, copays, and deductibles that aren't covered by a typical health plan. It is entirely dependent on the sort of supplemental health plan selected by the client.
Medigap insurance, which is given by private insurance firms to persons registered in Original Medicare, is one of the most frequent kinds of supplemental insurance. (Medicare Supplement policies cannot be combined with Medicare Advantage plans). Original Medicare, which comprises Part A hospital insurance and Part B medical insurance, covers a wide range of health-care services and medical supplies, but not all. Thus, supplement plan come in varieties like serious illness, accidents, hospital stays, dental visits, orthodontics, eye exams and many more.
Supplemental health insurance is not a replacement for complete health insurance. They provide limited benefits, usually up to a predetermined amount, for specific preventive therapies or health issues. Supplemental plans may pay a fixed lump payment straight in some instances. These policies are sometimes referred to as benefit plans rather than insurance plans because they are often simply set up to cover specific costs.
The supplemental health insurance sector has been completely digitalized, with health insurance policies purchased and renewed through the insurer's official website. The sale of health insurance policies has risen considerably in recent years as consumers have realized the need of having financial backup in the event of a medical emergency. Even in times of economic hardship for businesses, the health insurance industry has persevered and grown to meet the needs of clients and global trends.
During the coronavirus outbreak, health insurance firms have seen a significant increase in medical coverage queries, with 30 to 40% more customers seeking coverage against the COVID-19 virus, which has infected over 96000 people in India and 4.71 million people worldwide. People with pre-existing medical illnesses, cancer patients with inadequate immunity, diabetes patients, and asthma patients are more likely to die. Because this is a new virus that is resistant to existing treatments, the nature of the virus is yet unknown. Further, the Insurance Regulatory Development Authority of India (IRDAI) has released guidelines for insurance carriers, requesting that COVID-19 cases be included in insurance plans due to the severity of the conditions. Many insurance companies are creating customized plans to ensure that the affected are covered, thereby creating huge market scope in the upcoming years.
Supplemental health insurance is sometimes called critical care insurance; these plans are considered specific to one particular type of illness or disease such as cancer, stroke, organ transplant, oral disorders, and others. Increasing instances of several diseases are considered as an important factor boosting the global supplemental health insurance market growth over the forecasting period. For reference:
Cancer is a prominent cause of mortality worldwide. According to World Health Organization (WHO) figures, cancer was responsible for an estimated 9.6 million fatalities, or one in every six deaths, in 2018. Men are more likely to get lung, prostate, colorectal, stomach, and liver cancers, whereas women are more likely to develop colorectal, lung, breast, cervical, and thyroid cancers. Most insurance companies don't cover the whole expenditure or cover half treatment expenditure for cancer disease. Due to which many people are still deprived of treatment owing to high treatment expenditures.
However, supplemental health insurance policies provide additional coverage for uninsured or partially insured treatment expenses of the disease. It covers the gap between traditional insurance treatment claims and treatment expenditures, which will regulate the growth of the supplemental health insurance market across the globe in upcoming years.
The companies that are providing supplemental health insurance have increased the insurance premium cost, owing to the rise in healthcare expenses such as the cost of medicines, hospital admission charges, and the cost of various other treatments, which is a major roadblock in the growth of the supplemental health insurance market.
In addition, most consumers across the globe have been infected with several chronic diseases such as heart disease, cancer, diabetes, and others. Healthcare professionals have been imposing huge costs for the treatments of such chronic diseases. Therefore, insurance companies are responsible for addressing massive claim settlement costs, which hinders market growth. The insurance beneficiaries from various regions, especially from the emerging economies, mostly include young adults and the geriatric population won't be able to afford high premium insurance policies, which will directly hamper the growth of the supplemental health insurance market.
The supplemental health insurance market is evolving and expanding and covering various healthcare industry segments such as accidental cases, IVF, deaddiction and rehabilitation insurance, and others. It provides opportunities to the service providers to use advancing technology and digitalization for enhancing the loan claim and management process. And also to fulfil the unmet demands of the diverse customers by covering other segments and providing additional coverage and benefits. Which will promote the growth of the supplemental health insurance market. For instance:
The rising incidences of road accidents and deaths or permanent disability due to expensive treatment will regulate the demand for supplemental health insurance during the forecasting period. According to World Health Organization (WHO) estimates, nearly 1.3 million people's lives are cut short each year as a consequence of a road traffic accident. Between 20 and 50 million more people suffer non-fatal injuries, with many incurring a disability as a result of their injury, this will promote the growth of the supplemental health insurance market across the globe and provide an opportunity to the various market key players to use strategic techniques to cater to the needs of the customers or clients.
The study categorizes the supplemental health insurance market based on type, and application area at the regional and global levels.
Based on the type, the market is divided into critical illness insurance and accident insurance. The accident insurance segment is expected to dominate the market share in 2022 in the global supplemental health insurance market. The accident insurance segment currently dominates the market share in the supplemental health insurance market. Traffic accidents are the most dreadful thing that can happen to a road user, despite the fact that they occur rather frequently. The majority of deadly incidents are caused by excessive speed. Road traffic accidents are the top cause of death by injury and the tenth biggest cause of death worldwide, according to PRB. Every year, an estimated 1.2 million people are killed in traffic accidents, and up to 50 million are wounded, accounting for 30 percent to 70 percent of orthopedic beds in developing-country hospitals. Due to these reasons accident insurance segment is likely to gain positively growth over the forecasting period.
Based on the regions, the global supplemental health insurance market has been segmented across Europe, North America, the Middle East & Africa, Asia-Pacific, and South America. North America is projected to account for the highest market share in 2022. Government measures to provide low-cost Medicare and Medicaid insurance, as well as increase the population covered by health-care programmers, are expected to drive regional growth. Furthermore, the high cost of medical items in this area, as well as favorable healthcare reimbursement rules, promote market expansion.
Europe is predicted to be the second-largest market throughout the projection period, owing to severe government legislation requiring residents to carry at least one health insurance coverage. Also, increased public awareness of the need of insurance plans will fuel market expansion in this area.
The supplemental health insurance market is a significant competitor, and extremely cutthroat in the sector are using strategies including product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.
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