Group Health Insurance Market Expected to Reach $1,800.08 Billion by 2031

According to a new report published by Allied Market Research, titled, “Group Health Insurance Market," The group health insurance market size was valued at $744.04 billion in 2021, and is estimated to reach $1,800.08 billion by 2031, growing at a CAGR of 9.4% from 2022 to 2031.

Mandatory provision of group health insurance in private & public sectors employees and surge in prevalence of chronic diseases, such as cardiovascular disease, cancer, and diabetes, are the key factors that boost the global group health insurance market growth. However, limitation of availability of reimbursement in certain specified clinics & hospitals and increase in group health insurance policy & its premium cost restrict growth of the group health insurance market. Conversely, development of advanced technology in the health care sector and increase in medical treatment cost are expected to create an immense opportunity for the market in the coming years.

On the basis of distribution channel, the agents segment is expected to grow at a fastest rate during the forecast period. This is attributed to the fact that with an increase in demand for customized and personalized services, optum unitedhealth group insurance agents are utilizing several websites and online selling platforms, which has become a major trend in the group health insurance market.    

On the basis of region, North America accounted for the highest group health insurance market share in 2021. This is attributed to growth in corporate culture and presence of large number of multinational companies in North America is a major factor for growth of group medical insurance in the region. However, Asia-Pacific is attributed to grow at a significant rate during the forecast period. This is attributed to the fact that Asia-Pacific group health insurance market has increased as there has been surge in demand to provide insurance to employees in MNCs in the region. In addition, growth in awareness among people about group healthcare insurance is expected to fuel growth of the market in the coming years.   

The group health insurance market has been positively impacted by the COVID-19 outbreak. This is attributed to the fact that consumer toward group health insurance market trends are changing and key players in the market are adopting technologies such as artificial intelligence-based solutions for claim processing & cognitive automation for real-time interaction with consumers.

Key findings of the study

• By plan type, the fully insured plan segment led the group health insurance market in terms of revenue in 2021.
• By enterprise size, the large enterprises segment accounted for the highest group health insurance market share in 2021.
• By region, North America generated the highest revenue in 2021.

The key players profiled in the group health insurance market analysis are Anthem Insurance Companies, Inc., Allianz Care, AXA, Aetna Inc., ACKO General Insurance Limited, American International Group, Inc., Cigna, Chubb, IFFCO-Tokio General Insurance Company Limited, and United HealthCare Services, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the group health insurance industry.