Europe Health Insurance Market – Industry Trends and Forecast to 2030

Europe Health Insurance Market, By Offering (Services and Solution), Provider (Public and Private), Level of Coverage (Bronze, Silver, Gold and Platinum), Network (Point Of Service (POS), Exclusive Provider Organization (EPOS), Indemnity Health Insurance, Health Savings Account (HSA), Qualified Small Employer Health Reimbursement Arrangements (QSEHRAS), Preferred Provider Organization (PPO), Health Maintenance Organization (HMO) and Others), Demographics (Adults, Minors, and Seniors), Coverage Type (Lifetime and Term), End User (Corporate and Individual), Distribution Channel (Direct Sales, Financial Institutions, E-Commerce, Hospitals, Clinics and Others) - Industry Trends and Forecast to 2030.

Europe Health Insurance Market Analysis and Insights

Growing number of daycare procedures is expected to drive market growth. However, the high cost of insurance premiums is expected to restrain market growth. The advantages of health insurance policies are expected to act as opportunities for market growth. However, Lack of awareness regarding the benefits of health insurance is expected to pose a challenge to market growth.

Data Bridge Market Research analyzes that the Europe health insurance market is expected to reach EURO 706,497.32 million by 2030 from EURO 481,427.01 million in 2022, growing with a substantial CAGR of 5.1% in the forecast period of 2023 to 2030.  

Market Definition

Health insurance is a type of insurance that provides coverage of all types of surgical expenses as well as medical treatment incurred from an illness or injury. It applies to a comprehensive or limited range of medical services providing the coverage of full or partial costs of specific services. It provides financial support to the policyholder as it covers all the medical expenses when the policyholder is hospitalized for treatment. It also covers pre as well and post-hospitalization expenses.

In the health insurance plan several types of coverage are available which is cashless or reimbursement claim. A cashless benefit is available when the policyholder takes treatment from the network hospitals of the insurance company. If the policyholder takes treatment from hospitals that are not in the list network, in that case, the policyholder meets all the medical expenses and then claims for reimbursement in the insurance company by submitting all the medical bills.

Europe Health Insurance Market Dynamics

This section deals with understanding the market drivers, opportunities, restraints, and challenges. All of this is discussed in detail below:     

Drivers

• Rising Cost of Medical Services

The rising expenses associated with surgeries, hospital stays, and medical services have resulted in a global financial crisis. In cases of severe illness or accidents, health insurance offers crucial financial assistance. The cost of medical services encompasses various elements, such as surgical expenses, doctor fees, hospitalization costs, emergency room charges, and diagnostic testing fees. This upward trend in medical service costs has consequently fueled the expansion of the health insurance market.

• Increasing Number of Daycare Procedures

Daycare procedures refer to medical procedures or surgeries that involve a shorter hospital stay. Patients undergoing daycare procedures only need to stay in the hospital for a brief period. In recent times, many health insurance companies have started including daycare procedures in their insurance plans. Unlike traditional insurance claims that require a minimum 24-hour hospital stay, policyholders can now claim insurance for daycare procedures without meeting this requirement. This inclusion of daycare procedures in health insurance policies has increased the demand for such coverage and contributed to the growth of the market.

Opportunities

• Advantages of Health Insurance Policies

Health insurance plans provide policyholders with reimbursement for various medical expenses, including hospitalization, surgeries, and treatments related to injuries or illnesses. A health insurance policy represents an agreement between the policyholder and the insurance company. Under this agreement, the insurance company commits to covering the costs of future medical issues, while the policyholder agrees to pay regular premiums according to the chosen insurance plan. The advantages offered by health insurance policies create favorable conditions for the expansion of the global health insurance market, as individuals recognize the value and benefits of securing such coverage.

• Increasing Healthcare Expenditure

Healthcare expenditure worldwide is experiencing rapid growth. According to a report by the World Health Organization (WHO), global spending on health has shown a consistent upward trend. Over the past two decades, health spending has more than doubled, reaching USD 8.5 trillion in 2019, equivalent to 9.8% of global GDP. However, the distribution of health spending is unequal, with high-income countries accounting for approximately 80% of the total expenditure. In low-income countries, healthcare is primarily financed through out-of-pocket spending (44%) and external aid (29%), whereas government spending takes precedence in high-income countries (70%). This increasing healthcare expenditure presents opportunities for the Europe health insurance market to expand and cater to the growing demand for comprehensive coverage.

• Restraints/ Challenges

Lack of Awareness Regarding the Benefits of Health Insurance 

A significant portion of the global population lacks awareness about the advantages of health insurance policies in the healthcare sector. As medical expenses rise due to advancements in the field, the healthcare industry is experiencing substantial growth. However, the adoption of health insurance policies remains limited due to a lack of awareness about their benefits. Despite the growth and advancements in healthcare technology, there is a need to increase awareness and understanding among individuals regarding the value and advantages of health insurance coverage.

• High Cost of Insurance Premiums

Health insurance is designed to cover a wide range of medical treatment costs, providing crucial financial support to policyholders when they require hospitalization. It extends coverage to both pre-hospitalization and post-hospitalization expenses, ensuring comprehensive support throughout the treatment journey. To maintain an active health insurance policy, policyholders are required to pay regular insurance premiums. However, in many cases, the cost of insurance premiums can be high, posing a challenge to the market's growth. The affordability and pricing of insurance plans are important factors to consider in order to address this barrier and foster market expansion.

Recent Developments

• In August 2020, International Medical Group, Inc. (IMG) introduced expanded product offerings to assist organizations in planning and researching safe international travel. The company introduced unique assistance services aimed at supporting clients in their travel plans for both the present and future. This strategic development enabled IMG to navigate the challenges posed by the pandemic successfully and maintain its growth and success.
• In June 2021, Vitality revealed a collaboration with Samsung UK, whereby Samsung Health will be integrated into the Vitality Programme. This integration aims to offer members additional options for tracking their activity and enhancing their overall health. By linking their Samsung Health profile to their Vitality Member Zone account, Android users can now enjoy the complete advantages of the Vitality Programme. The partnership allows for the automatic recording of daily steps and heart rate activity through Samsung Health, enabling members to earn Vitality activity points seamlessly.  

Europe Health Insurance Market Scope

The Europe health insurance is segmented into eight notable segments based on offering, provider, level of coverage, network, demographics, coverage type, end use, and distribution channel. The growth among segments helps you analyze niche pockets of growth and strategies to approach the market and determine your core application areas and the differences in your target markets.

Offering

• services
• solution

On the basis of offering, Europe health insurance market is segmented into services and solution.

Provider

• Public
• Private

On the basis of provider, Europe health insurance market is segmented into public and private.

Level Of Coverage

• Bronze
• Silver
• Gold
• Platinum

On the basis of level of coverage, Europe health insurance market is segmented into bronze, silver, gold and platinum.

Network

• Point Of Service (POS)
• Exclusive Provider Organization (EPOS)
• Indemnity Health Insurance
• Health Savings Account (HSA)
• Qualified Small Employer Health Reimbursement Arrangements (QSEHRAS)
• Preferred Provider Organization (PPO)
• Health Maintenance Organization (HMO)    
• Others

On the basis of network, Europe health insurance market is segmented into point of service (POS), exclusive provider organization (EPOS), indemnity health insurance, health savings account (HSA), qualified small employer health reimbursement arrangements (QSEHRAS), preferred provider organization (PPO), health maintenance organization (HMO) and others.

Demographics

• Adults
• Minors
• Seniors

On the basis of demographics, Europe health insurance market is segmented into adults, minors and seniors. 

Coverage Type

• Lifetime
• Term

On the basis of coverage type, Europe health insurance market is segmented into lifetime and term.

End Use

• Corporates
• Individual

On the basis of end use, Europe health insurance market is segmented into corporates and individual.

Distribution Channel

• Direct Sales
• Financial Institutions
• E-Commerce
• Hospitals
• Clinics
• Others

On the basis of distribution channel, Europe health Insurance market is segmented into direct sales, financial institutions, e-commerce, hospitals, clinics, others.

Europe Health Insurance Market Regional Analysis/Insights

Europe health insurance is segmented into eight notable segments based on offering, provider, level of coverage, network, demographics, coverage type, end use, and distribution channel.  

The countries covered in the Europe health insurance market report are U.K., Germany, France, Russia, Italy, Spain, Netherlands, Poland, Switzerland, Belgium, Sweden, Turkey, Denmark, Norway, Finland and Rest of Europe.

U.K. is expected to dominate the market due to growing demand for health insurance from corporates sector in the region.

The country section of the report also provides individual market-impacting factors and changes in regulation in the market domestically that impact the current and future trends of the market. Data points such as new sales, replacement sales, country demographics, regulatory acts, and import-export tariffs are some of the major pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, and the impact of sales channels are considered while providing forecast analysis of the country data.

Competitive Landscape and Europe Health Insurance Market Share Analysis

The Europe health insurance market competitive landscape provides details of competitors. Details included are company overview, company financials, revenue generated, market potential, investment in R&D, new market initiatives, production sites and facilities, company strengths and weaknesses, product launch, product approvals, product width and breadth, application dominance, and product type lifeline curve. The above data points provided are only related to the company’s focus on the market.

Some of the major market players operating in the Europe health insurance market are Aetna Inc . (A Subsidiary of CVS Health)  (U.S.), UNITEDHEALTH GROUP (U.S.), AXA (France), Bupa (U.K.), ASSICURAZIONI GENERALI S.P.A. (Italy), Allianz Care (A subsidiary of Allianz)  (France), Cigna (U.S.), Aviva (U.K.), VHI Group (Ireland), Vitality (U.K.), Oracle (U.S.), MAPFRE (Spain), Saga (U.K.), International Medical Group Inc. (U.S.), Broadstone Corporate Benefits Limited (U.K.), General and Medical Finance Ltd (U.K.), Healthcare International Global Network Ltd. (U.K.), Now Health International (Hong Kong), Freedom Health Insurance (U.K.) and among others.

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