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2022

Critical Illness Insurance Market

Critical Illness Insurance Market Size, Share, Competitive Landscape and Trend Analysis Report by Application, by Premium Mode, by End User : Global Opportunity Analysis and Industry Forecast, 2021-2031

BI : Insurance

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Author's: Pradeep Ravi | Onkar Sumant
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Critical Illness Insurance Market Research, 2031

The Global Critical Illness Insurance Market was valued at $124.7 billion in 2021, and is projected to reach $354 billion by 2031, growing at a CAGR of 11.2% from 2022 to 2031.

Critical illness insurance provides additional coverage for medical emergencies like heart attacks, strokes, or cancer. Because these emergencies or illnesses often incur greater than average medical costs, these policies pay out cash to help cover those overruns when traditional health insurance may fall short. Moreover, critical illness insurance pays for a lump sum if the insured is diagnosed with a covered illness. This payout can be used to pay for anything from mortgage payments to medical expenses. In addition, critical illness insurance can pay for costs not covered by health insurance, such as deductible or out-of-network doctor costs.

Critical Illness Insurance Market Insights

The rising number of health issues due to unhealthy lifestyle of people causes serious illness such as kidney failures, heart attack, cancer and other such serious illness is propelling consumers to take critical illness insurance coverage. In addition, rising awareness about the benefits of a critical illness insurance coverage among consumers is a major driving factor for the market. Moreover, the cost of treatment without having a insurance coverage may lead to huge medical bills for which customers opt for the critical illness insurance. Therefore, these are some of the factors propelling the growth of critical illness insurance market.

However high amount of premium for the critical illness insurance is a major factor limiting the growth of the market. On the contrary, the smooth experience offered by the insurance coverage pertaining to reimbursement of medical bills and cashless treatments at best hospitals without the worry of high fees charged for operation and treatments is expected to provide lucrative growth opportunities in the coming years.

The report focuses on growth prospects, restraints, and trends of the critical illness insurance market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the critical illness insurance market share.

Segment Review

The critical illness insurance market is segmented on the basis of application, premium mode, end user, and region. By application, it is segmented into cancer, heart attack, stroke, and others. By premium mode, it is bifurcated into monthly, quarterly, half yearly, and yearly. Based on application, the critical illness insurance market is bifurcated into individual, and businesses. The businesses segment is further sub segmented into group policies and individual policies. The group policies segment is further divided into simplified issue policies, and fully underwritten policies. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Critical Illness Insurance Market by Application

By application, the cancer segment attained the highest growth in 2021. This is attributed to the fact that critical illness insurance plans usually tend to cover cancer, which is severe or terminal, and many types of cancer that are generally treatable are included. Moreover, the critical illness insurance covers the patient even if they have pre-existing ailments, including cancer. Moreover, a critical illness insurance policy is specifically designed to protect the insured financially from the perils involved with cancer.

Critical Illness Insurance Market
By Region
2031
Asia-pacific 
North America
Europe
LAMEA

North America accounted for the highest market share in 2021

By region, North America attained the highest growth in 2021. This is attributed to the rise in the number of cases for patients suffering from life-threatening diseases such as kidney failure, cancer, heart attack, strokes, and modern lifestyle and increasing prevalence of these diseases in the region. In addition, the critical illness plan supports coverage across specific life-threatening disorders, increasing the risk of falling prey to lifestyle diseases, augmenting the middle class, increasing life expectancy, and population growth is also propelling the critical illness insurance market growth.

The report analyzes the profiles of key players operating in the critical illness insurance market such as Aegon, AFLAC INCORPORATED, Allianz Care, American International Group, Inc., Aviva, AXA Hong Kong, Bajaj Allianz General Insurance Co. Ltd., Cigna, Future Generali India Insurance Company Ltd., Legal & General Group plc, Liberty Mutual Insurance, MetLife Services and Solutions, LLC., Royal London, Sun Life Assurance Company of Canada, United HealthCare Services, Inc., Modern Insurance Agency, Inc., and Plum Benefits Private Limited. These players have adopted various strategies to increase their market penetration and strengthen their position in the critical illness insurance industry.

COVID-19 Impact Analysis

The COVID-19 pandemic had a positive impact on the critical illness insurance market outlook as consumers became more aware about having an insurance coverage for their health. Moreover, as the number of serious diseases have increased among people, they are more inclined towards having a critical illness cover along with the health insurance. Moreover, COVID infected patients are more to serious illness such as heart attack, cancer and others due to weak immune systems. Therefore, the demand for critical care insurance has increased during the COVID-19 pandemic which ultimately had a positive impact on the market.

Top Impacting Factors

Rising Number of Critical Health Issues

With the rising number of health issues among people due to unhealthy lifestyle, there is an increase in the serious critical illness such as cancer, heart attacks and others. However, health insurance does not cover a range of such critical illness for which consumers are purchasing critical health insurance for covering the cost of medical bills, hospitalization fees and other related costs. In addition, rise in number of instances of several diseases, such as brain tumor and cardiovascular diseases, is further increasing the demand for critical illness policy. Therefore, rising number of critical health issues among people is one of the major driving factor of the critical illness insurance market.   

Higher Premium Cost for Critical Illness Coverage

Companies providing critical illness insurance have increased the insurance premium cost, owing to surge in healthcare expenses such as cost of medicines, hospital admission charges, and cost of various other treatments. In addition, most consumers across the globe have been infected with several chronic diseases such as heart disease, cancer, Alzheimer’s, and diabetes. Healthcare professionals have been imposing huge cost for the treatment of chronic diseases. Thus, insurance companies are responsible to address massive claim settlement cost, which hinders the market growth.

Smooth Process of Reimbursement for the Coverage

Critical illness coverage provides a smooth experience to the insured in terms of cashless medical treatment for their illness. In addition, it offers peace of mind to the insured without having to worry about paying the high cost of medical bills out of their pockets. Moreover, the reimbursement process is very smooth and can the insured can even be eligible for a cashless treatment at the best hospital and receive the best possible treatment. Therefore, the peace of mind and the smooth process of reimbursement and cashless treatment offered under the critical illness insurance coverage will provide major lucrative opportunities for the growth of the market in the upcoming years.

Key Benefits for Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the critical illness insurance market forecast analysis from 2021 to 2031 to identify the prevailing critical illness insurance market opportunity.
  • The market research is offered along with information related to key drivers, restraints, and opportunities.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the critical illness insurance market size segmentation assists to determine the prevailing market opportunities.
  • Major countries in each region are mapped according to their revenue contribution to the global market.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes the analysis of the regional as well as global critical illness insurance market trends, key players, market segments, application areas, and market growth strategies.

Critical Illness Insurance Market Report Highlights

Aspects Details
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Market Size By 2031

USD 354 billion

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Growth Rate

CAGR of 11.2%

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Forecast period

2021 - 2031

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Report Pages

345

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By Application
  • Others
  • Cancer
  • Heart Attack
  • Stroke
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By Premium Mode
  • Monthly
  • Quarterly
  • Half Yearly
  • Yearly
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By End User
  • Individual
  • Businesses
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By Region
  • North America  (U.S., Canada)
  • Europe  (UK, Germany, France, Italy, Spain, Netherlands, Rest Of Europe)
  • Asia-Pacific  (China, India, Japan, Australia, Singapore, Rest Of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

Royal London, Future Generali India Insurance Company Ltd., Aviva, Legal & General Group plc, Sun Life Assurance Company of Canada, MetLife Services and Solutions, LLC., Allianz Care, United HealthCare Services, Inc., Aegon, Bajaj Allianz General Insurance Co. Ltd., Cigna, Plum Benefits Private Limited, AXA, Liberty Mutual Insurance, American International Group, Inc., AFLAC INCORPORATED, Modern Insurance Agency, Inc.

Analyst Review

Life-threatening health ailments such as cancer, stroke, heart attacks and paralysis are categorized as critical illnesses. When diagnosed with a critical illness, patients require intensive care and continuous monitoring, which, in turn, can put much pressure on their finances. Therefore, a critical illness insurance offers coverage against various life-threatening diseases like heart attacks, cancer, renal failure, and stroke. Moreover, critical illness covers can help in paying off costly medical expenses for a particular set of diseases. If any illness gets diagnosed and meets policy requirements, the insured receives a lump sum or staggered payout to meet the medical condition.

Furthermore, market players are adopting various strategies for enhancing their services in the market and improving customer satisfaction. For instance, on April 2021, Bajaj Allianz General Insurance launched a Criti-Care critical illness policy that allows customers to design their coverage by selecting any or all the five plans within the policy, waiting period as well as survival period. The policy offers cancer care, cardiovascular care, kidney care, neuro care and transplant and sensory organ care. In addition, this policy covers 43 critical illnesses, which include both initial and advanced stages mentioned in the policy. The idea behind this product is to not only give customers the freedom to structure the policy as per their needs, but also provide them with much needed financial support in crucial times to recover faster.

Some of the key players profiled in the report include Aegon, AFLAC INCORPORATED, Allianz Care, American International Group, Inc., Aviva, AXA Hong Kong, Bajaj Allianz General Insurance Co. Ltd., Cigna, Future Generali India Insurance Company Ltd., Legal & General Group plc, Liberty Mutual Insurance, MetLife Services and Solutions, LLC., Royal London, Sun Life Assurance Company of Canada, United HealthCare Services, Inc., Modern Insurance Agency, Inc., and Plum Benefits Private Limited. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.

Author Name(s) : Pradeep Ravi | Onkar Sumant
Frequently Asked Questions?

The rising number of health issues due to unhealthy lifestyle of people causes serious illness such as kidney failures, heart attack, cancer and other such serious illness is propelling consumers to take critical illness insurance coverage. In addition, rising awareness about the benefits of a critical illness insurance coverage among consumers is a major driving factor for the market. Moreover, the cost of treatment without having a insurance coverage may lead to huge medical bills for which customers opt for the critical illness insurance. Therefore, these are some of the factors propelling the growth of critical illness insurance market.

Based on application, the critical illness insurance market is bifurcated into individual, and businesses. The businesses segment is further sub segmented into group policies and individual policies. The group policies segment is further divided into simplified issue policies, and fully underwritten policies.

North America is the leading regional market for critical illness insurance market

The critical illness insurance market is estimated to reach $353.99 billion by 2031

Aegon, AFLAC INCORPORATED, Allianz Care, American International Group, Inc., Aviva, AXA Hong Kong, Bajaj Allianz General Insurance Co. Ltd., Cigna, Future Generali India Insurance Company Ltd., Legal & General Group plc, Liberty Mutual Insurance, MetLife Services and Solutions, LLC., Royal London, Sun Life Assurance Company of Canada, United HealthCare Services, Inc., Modern Insurance Agency, Inc., and Plum Benefits Private Limited.

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Critical Illness Insurance Market

Global Opportunity Analysis and Industry Forecast, 2021-2031