Critical Illness Insurance Market Size to Grow by USD 541.4 Bn by 2032 | Cancer Disease Segment to Hold 34% Share

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The latest insights from Market.us highlight the tremendous growth potential of emerging markets, where healthcare costs are on the rise. With a growing need for financial protection against serious illnesses, the demand for critical illness insurance policies is expected to surge as insurance penetration increases in these markets.

New York, April 26, 2023 (GLOBE NEWSWIRE) — The global critical illness insurance market is projected to reach USD 541.4 billion in 2032 at a CAGR of 11.2%, from USD 192.3 billion in 2022. Critical illness insurance is a type of policy that provides lump-sum payments if the policyholder is diagnosed with an eligible serious illness or medical condition covered by the policy. Critical illness insurance was designed to provide financial security to those facing high medical bills, lost income, or other costs caused by a serious illness. Critical illness insurance provides protection from serious illnesses like cancer, heart attack, stroke, organ failure, and other life-threatening ailments. On diagnosis of a covered illness, policyholders typically receive money that can be used for medical bills, lost income, and other necessary expenses. Critical illness insurance costs vary based on several factors, such as the age and health of the policyholder, coverage amount, and illnesses covered by the policy.

Critical Illness Insurance Market

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Key Takeaway:

  • By disease, in 2022, the critical illness insurance market was dominated by the cancer disease segment due to its increased cases.
  • By premium mode, the monthly segment dominated the largest market share in premium mode analysis and accounted for the largest revenue share in 2022.
  • By type, the individual segment dominated the largest market share.
  • In 2022, North America dominated the market with the highest revenue share of 40%.
  • APAC is expected to grow at a greater pace owing to the aging population and high prevalence of chronic diseases.

Factors affecting the growth of the Critical Illness Insurance industry

There are several factors that are affecting the growth of the critical illness insurance industry. These include:

  • Aging Population: As the population ages, their risk for critical illnesses such as cancer, heart disease, and stroke increases. This has driven an increasing demand for critical illness insurance as people look to protect themselves and their families financially from these illnesses.
  • Rising Healthcare Costs: Healthcare expenses worldwide are rising, and critical illnesses often require expensive treatments and prolonged hospital stays. As a result, more people are turning to critical illness insurance to help cover these expenses.
  • Increase in Lifestyle Diseases: Lifestyle diseases such as diabetes, obesity, and hypertension are becoming more widespread around the world. These conditions can increase your risk for critical illnesses and are fuelling demand for critical illness insurance policies.
  • Advances in Medical Technology: Medical innovation has dramatically improved survival rates for critical illnesses, yet treatments remain expensive. Critical illness insurance can help cover these expenses and offer financial security to policyholders and their families.
  • Government Policies: Some governments have implemented policies to encourage people to purchase critical illness insurance. For instance, in some countries, tax incentives are offered to individuals who purchase these policies.
  • Awareness has Grown: With growing awareness of critical illnesses and their financial toll on families, more people are realizing the significance of having critical illness insurance. This has resulted in an uptick in demand for such products.

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Market Growth

As the global population ages, so too do the risks for critical illnesses like cancer, heart disease, and stroke. This has spurred an uptick in demand for critical illness insurance as people seek to shield themselves and their families financially from these devastating illnesses. Modern medical technology has drastically improved survival rates for critical illnesses, but treatments have become more expensive. Critical illness insurance can help cover these expenses and provide financial security to policyholders and their families. Lifestyle diseases like diabetes, obesity, and hypertension are becoming more common worldwide – these conditions increase the risk of critical illnesses thus driving demand for this type of cover.

Regional Analysis

North America is expected to be the leading region in the global critical illness insurance market, boasting a market share of 40% and projecting a compound annual growth rate (CAGR) of 14.6% over the forecast period. The region’s high incidence of critical illnesses, an established insurance industry, and rising consumer awareness are driving market growth. The United States leads this space as it is the leading contributor to this region. Europe is the second-largest market for critical illness insurance, led by countries such as the United Kingdom, Germany, and France. Asia Pacific’s aging population and high prevalence of chronic diseases are driving market expansion with countries like China, Japan, and India leading the charge with their growing middle classes, increased awareness about critical illnesses, and rising healthcare expenditure fuelling expansion there too.

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Scope of the Report

Report Attribute Details
Market Value (2022) USD 192.3 billion
Market Size (2032) USD 541.4 billion
CAGR (from 2023 to 2032) 11.2%
North America Revenue Share 40.0%
Historic Period 2016 to 2022
Base Year 2022
Forecast Year 2023 to 2032

Market Drivers

The rising incidence of critical illnesses such as cancer, heart disease, and stroke has created an increasing need for critical illness insurance. Medical treatments and survival rates continue to improve, increasing the likelihood that more people will develop critical illnesses and require financial protection to cover associated expenses. Healthcare costs worldwide continue to rise, creating a financial strain for individuals and families alike. Critical illness insurance can provide financial security to cover the high cost of medical treatments and other expenses resulting from a critical illness. With increased awareness and education about critical illnesses and their financial toll, more people are becoming aware of the value of critical illness insurance. This growing awareness has created a demand for policies that provide comprehensive protection against financial hardships resulting from critical illnesses. Insurers are increasingly offering customized critical illness insurance policies tailored to policyholders’ requirements, whether these cover specific illnesses or are tailored specifically to individuals’ and families’ requirements.

Market Restraints

Critical illness insurance policies can be pricey and high premiums may deter some individuals and organizations from purchasing them. This could limit the growth of the critical illness insurance market, especially in regions where healthcare costs are already high. Some critical illness insurance policies may offer limited coverage, making them less attractive to consumers. Policies may exclude certain critical illnesses or have limits on coverage amounts or duration. Government policies and regulations can also influence the growth of the critical illness insurance market. For instance, in certain countries, governments may provide free or subsidized healthcare for critical illnesses which could reduce demand for policies covering such illnesses. Critical illness insurance policies may not be easily available through all distribution channels, which could limit their reach and accessibility. This is especially true in developing countries where insurance distribution networks may not be well established.

Market Opportunities

Emerging markets boast tremendous growth potential, as healthcare costs are on the rise and individuals and businesses alike seek financial protection against serious illnesses. As insurance penetration increases in these markets, the demand for critical illness insurance policies is expected to increase. Insurance providers can design tailored policies to fit specific customer segments covering critical illnesses or provide differing coverage amounts and durations based on what the policyholder requires. Modern technologies such as telemedicine and wearable devices allow insurers to more accurately assess the risk of critical illnesses and customize policies accordingly. This enables them to provide more tailored policies, resulting in higher customer satisfaction ratings. Insurers may collaborate with healthcare providers to develop comprehensive critical illness insurance policies that cover both medical and non-medical expenses associated with a critical illness. Partnerships like these help insurers provide more comprehensive protection while improving customer experience.

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Report Segmentation of the Critical Illness Insurance Market

Disease Insight

On the basis of disease, the critical illness insurance market is divided into cancer, heart attack, stroke, and other applications. Of these diseases, cancer is projected to be the most lucrative segment within the global critical illness insurance market with a projected CAGR of 11.4%. By 2022, the total revenue share of cancer will reach 34%. Many critical illness insurance policies are tailored to provide coverage for cancer – one of the most prevalent and financially devastating illnesses. These policies typically cover various cancer types and stages as well as provide benefits for treatments like chemotherapy, radiation therapy, and surgery. Heart disease can also be caused by genetics, lifestyle choices, and age; policies in this category may cover conditions like a heart attack or stroke with benefits like bypass surgery, stenting, and angioplasty.

Premium Mode Insight

Premium mode further subdivides the market into monthly, quarterly, half-yearly, and yearly. The monthly premium mode is estimated to be the most lucrative segment in the global critical illness insurance market with a share of 45% and CAGR projected at 14.4% between 2022 and 2025. Premium mode refers to the frequency at which premiums are paid and insurers typically offer various options to meet different policyholder needs. The monthly premium mode is the most frequent option, where policyholders make regular payments. When selecting a premium mode for an insurance policy, the policyholder’s financial situation, budget, and preferences must all be taken into account. Policyholders who prefer making fewer payments annually can select either annual or semi-annual premium modes, while those who favor smaller, more frequent payments might select monthly or quarterly premium modes. Furthermore, the premium mode selected may affect the overall cost of the policy – insurers often offer discounts or surcharges based on which premium mode is selected, with annual typically being the most cost-effective choice.

Type Insight

On the basis of type, the market is divided into individual and family. The individual segment is expected to be the most lucrative market in global critical illness insurance, boasting a revenue share of 55% and a projected CAGR of 13.4% over the forecast period. Individual policyholders are the primary beneficiaries of critical illness insurance, purchasing policies to financially safeguard themselves and their families in case of serious illnesses. Family insurance plans are more cost-effective than individual coverage, providing customers with better conditions at a lower price. Customers receive fair coverage at an affordable cost with this plan. Many corporations also include this coverage in employee benefits packages, providing workers with financial security in case of serious illnesses. Coverage may be extended to all employees or tailored specifically towards certain groups such as executives or those at high health risks.

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Market Segmentation

Based on Disease

  • Cancer
  • Heart Attack
  • Stroke
  • Other Applications

Based on Premium Mode

  • Monthly
  • Quarterly
  • Half Yearly
  • Yearly

Based On Type

  • Individual
  • Family

By Geography

  • North America
    • The US
    • Canada
    • Mexico
  • Western Europe
    • Germany
    • France
    • The UK
    • Spain
    • Italy
    • Portugal
    • Ireland
    • Austria
    • Switzerland
    • Benelux
    • Nordic
    • Rest of Western Europe
  • Eastern Europe
    • Russia
    • Poland
    • The Czech Republic
    • Greece
    • Rest of Eastern Europe
  • APAC
    • China
    • Japan
    • South Korea
    • India
    • Australia & New Zealand
    • Indonesia
    • Malaysia
    • Philippines
    • Singapore
    • Thailand
    • Vietnam
    • Rest of APAC
  • Latin America
    • Brazil
    • Colombia
    • Chile
    • Argentina
    • Costa Rica
    • Rest of Latin America
  • Middle East & Africa
    • Algeria
    • Egypt
    • Israel
    • Kuwait
    • Nigeria
    • Saudi Arabia
    • South Africa
    • Turkey
    • United Arab Emirates
    • Rest of MEA

Competitive Landscape

Major key players are employing various strategic tactics such as launching innovative services, partnerships, and collaboration to expand and strengthen their businesses in growing markets. Companies invest heavily in research and development to better meet consumer satisfaction while gaining a competitive edge within the market.

Some of the major players include:

  • Allianz SE
  • China Life Insurance Company
  • Aflac Incorporated
  • Aegon
  • Prudential PLC
  • AIG Inc.
  • American Fidelity
  • Anthem Inc.
  • Aviva PLC
  • UnitedHealthcare
  • Desjardins Group
  • Other Key Players

Recent Development of the Critical Illness Insurance Market

  • In 2021, Prudential PLC released “Thrive,” a mental health app that provides policyholders with resources and support.
  • In 2021, China Life Insurance Company introduced its “Health Plus” health and wellness program. This initiative provides policyholders with access to various wellness activities.
  • In 2020, Aviva PLC unveiled its MyAviva digital platform that allows customers to manage their policies and make claims online.

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