Insurance Services Market Trends
Category Intelligence on Insurance Services covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
Industry Outlook & Drivers
Global Market Outlook on Insurance Services
- The global health insurance market is valued at USD 1 trillion globally in 2020
- The market is forecasted to grow annually, at the rate of 6–8 percent, to approximately USD 1.7 trillion by 2022 and demand is expected to increase drastically
- The US has the highest market maturity, followed by Europe
- APAC and parts of Western Europe are expected to be the future growth-driving markets for health insurance services
Market Drivers and Constraints
The global economic environment continues to be a key driver for the insurance markets. The life and health insurance sector growth is predicted to be largely based on demand from emerging markets (emerging Asia, LATAM, MENA).
Global increase in healthcare costs by 8.5% is considered as a major marker driver for health insurance.
Drivers
- Consolidation of providers, payers and pharmaceutical, and life science companies have engaged in the merger and acquisition activity in the recent years. As a result, organizations are gaining greater market share and negotiating power, it is observed that a consolidated healthcare market drives the health care prices upward
- Technology and treatment innovation pharmaceutical, life science, and medical device industries are launching new products every year, with high cost that boost utilization globally
- It has been observed that automation will reduce the cost of operation and process time
- The government-funded insurance schemes are not performing well in the UK (National Health Scheme), and thus, the demand for private life and health carriers have increased (the UK is unstable based on the amount of premium because of Brexit and National Health Scheme)
Constraints
- The global economic market slowed in 2016, as both advanced and emerging markets witnessed diminished growth. Equity markets and interest rates progressed favorably toward the end of 2016, improvement can at best be gradual with the political landscape being in a flux
- It was observed that competitive pressure remained high for life and health insurance, though the average price decline moderated
- Creating globally consistent accounting standards, adapting a comprehensive risk-based capital framework, treating customers fairly, and ensuring development of robust technology infrastructure were the key themes that regulators focused
Market Trends and Drivers – Insurance Services
Analysis of the historical medical cost trend reveals the forces that repeatedly influenced healthcare costs. They include economy-wide drivers, such as demographics and American lifestyle trends, and healthcare-specific influences, such as technology and treatment, innovations, and payment model changes.
Economy-wide Drivers
Income
Higher income is associated with higher health spending. Growth has been slow in the past decade, income is rising on an average and within them healthcare spending
Demographics
There has been an increase in elderly population. It was observed in 2012, that 15.9 percent of the civilian labor force was between the age 55 and 64; and this is expected to increase to 17.3 by 2022. An older workforce typically has more health needs, resulting in higher healthcare expenditures.
Lifestyle
Obesity, smoking, substance abuse, poor nutrition, and physical inactivity intensify the utilization of health services 24/7. Over 70% of the Americans are considered overweight, and abuse of opioids, such as heroin and prescription pain relievers, is on the rise. These growing health risks drive healthcare costs upward.
Healthcare-specific Drivers
Technology and treatment innovation
The pharmaceutical, life sciences, and medical device industries are funding for research and development and launches new products every year, some with hefty price tags and potential to boost utilization.
Government regulation
From nurse staffing levels to the use of health information technology, government regulation has long had an influence on healthcare costs.
