Health insurance market to exceed $5t by 2032

The senior citizens segment is expected to expand by more than 3.5% annually.

The global health insurance market, valued at more than $3t in 2022, is expected to grow at a compound annual growth rate (CAGR) of 5.5% from 2023 to 2032, taking its value to more than $5t by 2032. 

Growth is expected to be supported by rising healthcare spending and increasing GDP across countries, according to a Global Market Insights report.

The critical illness health insurance segment is forecast to exceed $2t by 2032. Demand is being driven by the growing incidence of life-threatening conditions such as cancer, stroke, heart attack and renal failure, which often require long-term treatment and high medical costs. 

According to the Indian Council of Medical Research's National Cancer Registry Programme, cancer cases in India increased from more than 1.3 million in 2020 to over 1.4 million in 2022.

Critical illness insurance helps policyholders cover hospitalisation costs, doctor consultations and other medical expenses, reducing the financial burden of treatment.

The market for health insurance provided by public service providers is also expected to surpass $3t by 2032. 

Public health insurance schemes mainly serve low- and middle-income groups by reducing out-of-pocket healthcare costs and expanding access to medical services. 

Governments in countries including Germany, the United States and India have continued to expand public health insurance programmes, particularly for older people and lower-income households.

Meanwhile, the senior citizens segment is projected to record a CAGR of more than 3.5% between 2023 and 2032. 

Older adults are more likely to develop chronic diseases and age-related health conditions, leading to higher healthcare costs. 

Health insurance helps cover these expenses and often includes benefits such as annual health check-ups, outpatient coverage and, in some cases, the ability to purchase policies without medical screening.