Pacific Prime’s The State of Health Insurance 2024 Report Is Here

Pacific Prime’s latest The State of Health Insurance 2023 Report (SOHI 2023) is out and available to download for free! In the latest report, we explored the latest health insurance trends across different regions in the world and provide insights from our own experts as well as from industry titans.

In this Pacific Prime article, we’ll go through some of the major trends and drivers from SOHI 2023, featuring contributor insights from major insurers, including Bupa, AXA, and Allianz.

What You Can Expect From The Report

In the report, we address the latest opportunities and challenges in the health insurance industry and dive into the key factors of change including geopolitical changes, macroeconomics pressures, the rise of new AI technologies, and changes the world faces as we emerge from a pandemic.

The State of Health Insurance in a Post COVID-19 World

From our analysis, just like in many other industries, the health insurance industry is being hit hard by inflation. The main causes of this is due to growing labor and supply expenses thanks to the COVID-19 pandemic.The average rate of global inflation is projected to be at 10% in 2023.

As we emerge from the pandemic, affordability becomes a major concern for the market. The industry scrambles to come up with cost mitigation strategies to combat the rising costs in premiums for individual, family, and group health plans.

Rise of AI

AI technology has become a hot topic in recent years. Whilst the technology has already been around for a while, In recent years, the insurance industry has seen a rise in AI-based solutions to optimize what used to be manual-intensive tasks including claims processing and risk prediction.

“What we should remember however when developing and investing in this style of technology is the importance of how virtual services approach customers with solutions so that the process doesn’t come across as intrusive. Risk management is crucial in this, especially as AI technologies become more deeply integrated into the IPMI industry.” – Xavier Lestrade / CEO at AXA Global Healthcare

The State of Health Insurance in a Post COVID-19 World

The COVID-19 pandemic significantly changed to the world. From normalizing social distancing and remote work to accelerating the growth of telemedicine and virtual care services. As the world continues to push virtual solutions, insurers are also adapting their services to cater to virtual services.

“Digital health enables healthcare to be truly globalized, allowing customers to have access to quality digital health services wherever they are. We have stepped up our digital propositions to give customers access to our specialist care wherever they are, for example, with our Global Virtual Care app which provides customers with access to phone and virtual same-day appointments with a global network of doctors, available 24/7.” Anthony Cabrelli / Managing Director at Bupa Global

Macroeconomic Challenges

The impact of the COVID-19 pandemic extends much further than just a surge in healthcare costs and health awareness. Macroeconomic uncertainty and geopolitical volatility such as the war in Ukraine, inflation, and a looming recession continue to pressure the industry.

“Soaring inflation in the broader economy has significantly increased costs in healthcare. And, coupled with labor shortages in healthcare and a rise in demand for services, it remains unclear when the surge will stop.” – David Myers / Chief Sales Officer, Health at Allianz Partners

Regional trends in the International Private Medical Insurance Sector

In addition to the global trends of the industry, in the latest report, we dive into the complexities and regional nuances of individual regions including:

• Asia-Pacific
• The Middle East and Africa
• The Americas
• Europe

Asia-Pacific

The health insurance market in Asia-Pacific is forecasted to grow at a compound annual growth rate (GACR) of 4.6%! In 2022, the market was valued at USD $394,264.38 and is expected to reach up to USD $564,990.33 million by 2030.

A key factor driving this growth is the region’s rapidly aging population. As the population ages, the demand for health insurance grows. People also become more willing to invest in health insurance plans.

The Middle East and Africa

In the Middle East and Africa, the health insurance market is expected to grow at a CAGR of 3.7%. The market is expected to be valued at USD $186,081.64 million by 2029.

In the Middle East, we can see a trend in increased government-funded health insurance initiatives. The most outstanding example is the UAE’s mandatory health insurance.

In Africa, the health insurance market is also experiencing growth from a combination of rapid urbanization,an increasing working population across the continent, and a growing awareness among the people on the advantages of being insured.

The Americas

In 2023, the Americas are hit with rampant inflation. In an effort to lower the healthcare costs, the US introduced the Inflation Reduction Act of 2022, allowing medicare to negotiate prescription drug prices and making virtual care more affordable.

In Latin America, we can see an incredible growth spurt for the e-commerce market. With the support of local governments, the market is experiencing accelerated growth of insurtech firms. However, the region still lags behind major global regions.

Europe

From what we can see, The CAGR of the European health insurance market is projected to grow at a CAGR of 4.4%. It is expected to reach up to $617,096.45 million by 2029.

The COVID-19 pandemic hit Europe’s healthcare system hard, causing a worrying rise in healthcare expenses attributed to missed screenings and delayed diagnoses.

We can also see a notable suge in musculoskeletal disorders and an increase in disability claims. Experts suspect that these may be caused by work-from-home office setups having a lack of ergonomics.

Read more in the Full Report

What we have mentioned is just a fraction of what the full report covers. To find out more about the latest state of health insurance and general trends in major cities in each region, download our full report for free today!

To seek professional insight on health insurance plans and all your insurance needs, contact us today to get in touch with our experts or get an obligation-free quote comparison!

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Vista Nip

Content Creator at Pacific Prime

Vista is a content creator at Pacific Prime. With over 8 years of writing experience for online platforms on various topics such as luxury lifestyle and digital entertainment. He enjoys diving into complex and otherwise confusing topics, and creating easy-to-understand content for the readers to help them navigate through the topic - something that’s perfectly aligned with Pacific Prime’s motto of ‘simplifying insurance’.

Born and raised in the cultural melting pot that is Hong Kong, and having studied at an international school, Vista has developed a multicultural perspective that he uses in his writing and strives to connect to people of different backgrounds.

In his free time, Vista enjoys immersing himself in different worlds, from video games to light novels and movies. His hobbies help him expand his writing style by putting himself in the point-of-view of different people and characters.

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