The rise in prevalence of chronic diseases, increase in health awareness and improvement in claim management are behind this growth, figures from Allied Market Research claim. And the rise in use of advanced technology among healthcare professionals can only lead to even more opportunities for the sector, the report finds.
Despite the good news, the research also found that the industry must focus on certain issues if it wants to take advantage of this growth – in particular the lack of knowledge about what’s included in a health insurance policy and the surge in health insurance premiums.
Who is set to benefit from this growth?
The direct sales segment is expected to benefit from the highest growth of 12.3 per cent during the forecast period because it eliminates middlemen involved in the distribution channel, such as agents and brokers.
“However, the broker/agent segment held the largest share in 2020, accounting for more than half of the global healthcare insurance market, as independent agents are best suited for clients due to their comprehensive knowledge of products and services,” the report said.
“By coverage, the preferred provider organisations segment dominated the global healthcare insurance market in 2020, contributing to around half of the market, as policyholders are provided healthcare services at discounted rates while opting for a certain specified network of doctors and hospitals.
“However, the exclusive provider organisations (EPOs) segment is projected to portray the highest growth of 11.3 per cent from 2021 to 2028, as EPO allows policyholders to receive medical treatment and services within certain EPO network providers.”
Meanwhile, the International Hospital Federation has extended the deadline for entry to its awards until 31 July to compensate for organisations still dealing with Covid-19.