The global hospitalisation insurance market is expected to grow to $153.27 billion in 2026, at a compound annual growth rate (CAGR) of 10.7 per cent.
However, it’s only expected to grow from $88.56 billion in 2021 to $101.91 billion in 2022, at a CAGR of 15.1 per cent. This is due to the Russia-Ukraine war, which has disrupted the short-term chance of global economic recovery after the pandemic. The conflict has led to economic sanctions on multiple countries, a surge in commodity prices and supply chain disruptions, causing inflation across goods and services affecting many markets worldwide.
The hospitalisation insurance market consists of sales of products by entities engaged in directly underwriting hospitalisation insurance policies, providing coverage for confinement due to illness, accidents, intensive care or convalescence. The industry is categorised based on the business model of the firms. Some insurance companies may offer other services, financial or otherwise.
What is hospitalisation insurance?
Hospitalisation insurance pays for hospital stays, outpatient treatment, surgery, or any other hospital-related activity involving the insured’s health.
The main demographics are minors, adults and senior citizens aged above 60.
Various service providers are private and public. The different networks are preferred provider organisations (PPOs), point of service (POS), health maintenance organizations (HMOs), exclusive provider organizations (EPOS) and other networks.
The increasing adoption of health insurance policies by individuals during Covid-19 is expected to fuel the growth of the market over the forecast period.
This isn’t the only health insurance sector forecasting a boost over the next few years, with the telemedicine market also expecting huge growth over the next decade.