Changes and trends shaping the global health insurance industry
Regional changes and trends
Please click on the region you would like to learn more about:
Asia-Pacific
Characterized by an aging population, coupled with the impacts of the pandemic, we’re likely to see an acceleration of telehealth and digital innovation in Asia-Pacific. Mental health claims and delayed treatment will also remain a concern for insurers going forward. Meanwhile, economic uncertainty has increased demand for insurance products in countries like China, Singapore, Thailand, etc.
Update from Pacific Prime: We’ve acquired insurtech CXA’s brokerage arms in Hong Kong and Singapore, and incorporated their industry-leading flex benefits capabilities into our offerings for corporate clients.
The Middle East
Pandemic-related economic slowdown in the Middle East has negatively affected insurers, who are investing in technology to meet consumers’ expectations of an enhanced service offering. When it comes to government regulation, several countries like the UAE, Bahrain, Qatar, and Saudi Arabia have launched mandatory health insurance to meet the long-term healthcare needs of their population. Investment in healthcare facilities is also likely to shine the spotlight on the UAE’s medical tourism sector in 2021.
Africa
Africa’s insurance market is inconsistent. 91% of premiums are concentrated in 10 countries, and South Africa accounts for 70% of total premiums. Compared to other regions, Africa’s insurance market is also relatively immature - but there is scope for growth. Digital innovation will likely propel this growth, particularly as the pandemic has accelerated the shift to digital and remote channels. Mobile apps will be a focus for insurtech companies in the region.
Europe
Across Europe, insurers’ profitability was high for countries where the state shouldered most of the pandemic-related costs. However, we’re also witnessing patients delay medical treatment due to the pandemic. In some countries like the UK, the National Health Service (NHS) has been backlogged, which may increase demand for private health insurance.
The Americas
In the US, the Affordable Care Act (ACA) makes a comeback, and the American Rescue Plan is rolled out to battle the pandemic and boost insurance coverage rates. Drug spending also continues to rise - especially concerning patented speciality drugs in Canada. Elsewhere in Latin America, insurers are customizing plans for a fast-growing market of working and middle-class population - amidst a backdrop of prevalent health conditions.
