APAC seen as fastest region in medical insurance market with 12.4% CAGR

The global medical insurance market was valued at $1.7t in 2023.

Asia-Pacific market is forecast to record the fastest pace in the medical insurance market, with a compound annual growth rate (CAGR) of 12.4% from 2023 to 2033, according to a report by Allied Market Research. 

Factors contributing to the expansion include stronger economic growth, higher disposable incomes, improved healthcare access, and increased demand for medical insurance in emerging markets.

The global medical insurance market was valued at $1.7t in 2023 and is projected to reach $4.4t by 2033.

The global market is expected to grow at a CAGR of 9.6% from 2024 to 2033.

Growth is being driven by rising demand for insurance products, increased awareness of health and wellness, and continued advancements in medical technology. 

However, the report notes that high premium costs, affordability issues, and regulatory compliance burdens remain key challenges for the sector.

The 25 to 34 age group accounted for the largest share of the market in 2023, contributing more than one-fourth of total revenue. 

This segment is expected to maintain its lead over the forecast period due to higher employment rates and increasing awareness of the importance of insurance coverage. 

The below-25 age group is projected to post the highest CAGR of 10.7% through 2033, supported by rising preventive care participation and broader insurance adoption amongst younger individuals.