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Health Insurance Is Estimated To Witness High Growth Owing To Opportunity To Provide Coverage To Uninsured Population

kiran gire
Health Insurance Is Estimated To Witness High Growth Owing To Opportunity To Provide Coverage To Uninsured Population

Health insurance provides coverage that can help pay for medical bills, and help people access quality healthcare services. Health insurance has become vital for people as medical costs continue to rise significantly every year. It protects customers financially in times of illness or accidents by offering a variety of medical and hospitalization plans. The global Health Insurance Market is estimated to be valued at US$ 2602 Mn in 2023 and is expected to exhibit a CAGR of 9.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

The opportunity to provide health insurance coverage to the uninsured population presents a major growth opportunity for players in the health insurance market. It is estimated that around 28 million people in the US do not have health insurance. Providing tailored and affordable health plans to this segment can help increase insurance penetration rate. Increasing awareness about the benefits of being insured and availability of subsidies especially for low-income groups are encouraging uninsured individuals to opt for health coverage. Insurance companies can leverage this opportunity by designing innovative plans to cater to the needs of uninsured population and drive their business growth over the forecast period.

Porter's Analysis

Threat of new entrants: The health insurance market requires high capital investment and expertise which act as entry barriers for new players. Strict regulations related to this industry further increase entry barriers.

Bargaining power of buyers: Individual buyers have moderate bargaining power due to availability of various insurance providers. However, large corporate buyers have high bargaining power due to volume of business.

Bargaining power of suppliers: Insurance companies depend on hospitals, doctors and pharmaceutical companies. These suppliers have moderate bargaining power due to dependence of insurers on their services and infrastructure.

Threat of new substitutes: Self-insurance is a potential substitute but cannot replace comprehensive health coverage. Direct primary care is an emerging low-cost substitute.

Competitive rivalry: The market is dominated by few major players resulting in high competitive rivalry. Players differentiate based on coverage, networks, prices and customer service to gain market share.

SWOT Analysis

Strength: Large customer base, established brands and distribution networks. Strong financial resources to invest in technologies and expand coverage.

Weakness: High operating costs, dependency on external service providers increases expenses. Vulnerable to regulations and legal challenges.

Opportunity: Rising healthcare needs, expansion in emerging markets. Growing demand for value added services like telemedicine and wellness programs.

Threats: Economic slowdowns and increased costs put pressure on profitability. Intense competition from existing and new entrants.

Key Takeaways

The global health insurance market growth is expected to witness high growth driven by aging population, chronic diseases and rising medical costs.

The US dominates the market owing to large population and healthcare spending. However, China is emerging as the fastest growing market in Asia Pacific supported by government initiatives and increased coverage.

Europe is another major regional segment led by Germany, France and UK. Mandatory public insurance and private voluntary insurance drives the European health insurance industry.

Key players operating in the health insurance market are US Magnesium LLC., Dead Sea Magnesium Ltd., POSCO, RIMA Group, Solikamsk Magnesium Works OAO, Wenxi YinGuang Magnesium Industry (Group) Co., Ltd., Shanxi Wenxi Hongfu Magnesium Co., Ltd., Shanxi Wenxi Zhenxin Magnesium Co., Ltd., and Taiyuan Tongxiang Magnesium Co., Ltd. These players focus on strengthening networks, launching affordable policies and using digital technologies to increase market share.

Get more insights on this topic: https://www.trendingwebwire.com/health-insurance-market-industry-insights-trends-health-insurance-market/

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kiran gire
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