Critical Illness Insurance Market Size, Share & Trends Analysis Report By Premium Type (Monthly, Quarterly, Half Yearly, Yearly), By Disease (Cancer, Heart Attack, Stroke, Major Organ Transplant, Other), By Type, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global critical illness insurance market size was valued at USD 350.02 billion in 2022 and is projected to expand at a compound annual growth rate (CAGR) of 7.0% from 2023 to 2030. An increase in the demand for critical illness insurance has been attributed to a number of factors, including changes to healthcare insurance laws (ACA), altering employer benefit priorities, and new distribution methods. Moreover, the increasing prevalence of chronic diseases is also expected to drive market growth. According to the World Health Organization (WHO), globally, cancer will be the primary cause of close to 10 million deaths in 2020, or close to one in every six.

The outbreak of the COVID-19 pandemic had a favorable effect on the prospects for the market as consumers became more aware of the importance of having health insurance. Moreover, key entities are attempting to make their critical illness insurance plans more alluring in response to the COVID-19 pandemic, in order to attract more consumers. Several of them are changing their critical illness insurance policies to include SARS-CoV-2 diagnosis.

The number of illnesses covered by critical illness insurance policies is expanding, which is a key factor in the development of the critical illness insurance market. Key insurance providers are concentrating on including coverage for numerous new diseases. For instance, in March 2022, The Hartford launched a novel critical illness insurance policy that is intended to cover more medical disorders and offer a wider variety of benefits depending on how serious a diagnosis is for a particular person. The company expanded the coverage of health issues such as mental health conditions, birth defects, and infectious diseases (including COVID-19 hospitalization).

Moreover, growing awareness about critical illness insurance benefits and the increasing need for critical illness insurance due to the high cost of treatment are some of the factors boosting the market growth. According to Johns Hopkins University, around one in four persons in America, or 26% of those 18 years and older, are estimated to suffer from a mental condition each year. Serious mental illness costs the American economy USD 193.2 billion in lost earnings annually. Mental health problems accounted for three of the top five primary diagnoses for inpatient stays among people aged between 18 and 44 years in 2018, after removing hospitalization linked to maternity and neonatal stays.

Premium Type Insights

The monthly premium segment dominated the market and accounted for the largest revenue share of 44.74% in 2022. The dominance of the segment can be attributed to customers preferring monthly premiums due to the high premium price of critical illness insurance. The critical illness premium cost depends mainly on the age of individuals. The monthly average cost of critical illness is USD 0.22 for those aged 25 and younger. However, the monthly average price for those aged 70 and above is USD 6.73.

The yearly premium segment is expected to acquire a significant revenue share in the market. This is attributed to the majority of critical illness insurance policies being cost-effective, particularly when compared to the price of health insurance. For younger adults in good health, the average cost of critical illness insurance can be as low as USD 120 per year.

Type Insights

The individual insurance segment dominated the market and accounted for the largest revenue share in 2022. The advantages of individual health insurance include: customers can select the insurance provider, the package, and the features that best suit their requirements. During the yearly Open Enrollment time, they have the option to renew or switch health insurance plans, options, and insurance providers.

The family insurance segment is expected to grow at a lucrative rate of 7.3% over the forecast period. This is due to family insurance plans being less expensive than individual health insurance. They provide coverage at a lower cost for better conditions. As a result, the plan offers reasonable coverage and is easier on the customer's wallet.

Disease Insights

The cancer segment dominated the market and accounted for the largest revenue share of 32.24% in 2022. This is attributed to the increasing prevalence of cancer worldwide, owing to increasing rates of smoking and changing lifestyles. Due to the high expense of treating critical illnesses like cancer, having critical illness insurance can help ease the financial burden of treatment. If a policyholder is diagnosed with a serious illness, the insurance service providers pay customers a lump sum payout.

On the other hand, the heart attack segment is projected to advance at a significant CAGR over the forecast period. This is attributed to the rising adoption of a sedentary lifestyle and the rapidly growing obese population with heart disease. In addition, the increasing prevalence of heart diseases is also expected to boost segment growth. Approximately 63,200 people in Canada receive a first-time diagnosis of a heart attack every year. With a 12% heart attack mortality rate, this leads to approximately 55,000 people living each year with varying degrees of heart damage. Moreover, in terms of health conditions covered by critical illness insurance, heart attacks are in the second position after cancer.

Regional Insights

North America dominated the critical illness insurance market and accounted for the largest revenue share in 2022. This can be attributed to the increasing number of cases of chronic diseases such as cancer, stroke, heart disorders, and kidney failure and the rising prevalence of these life-threatening diseases, which boosts regional market growth. Moreover, the regional critical illness insurance market is expanding as a result of the increasing incidences of cancer diagnosis and rising death rates. According to the American Cancer Society, in 2021, around 608,570 cancer deaths and 1.9 million new cancer cases were diagnosed in the U.S.

Asia Pacific is estimated to be the fastest-growing regional segment over the forecast period due to the growing geriatric population and large population in countries such as India and China. The commercial health insurance market in China has rapidly grown since the start of a new phase of medical care system reforms, including the establishment of a well-funded social medical insurance plan, in 2009. Moreover, in November 2020, the China Medical Doctor Association and the Insurance Association of China jointly launched revised industry standard definitions of Critical Illness. A multi-dimensional analysis was performed based on 400 million industry-wide policies and claims and 2,900 clinical illness products. Such initiatives are expected to boost the critical illness insurance market in the country.

Key Companies & Market Share Insights

Key players operating in the market are undertaking various strategic initiatives, such as collaborations, partnerships, new service launches, and geographical expansions, to strengthen their market presence. For instance, in May 2022, Aflac announced the launch of its novel redesigned Aflac Group Critical Illness Insurance to aid companies in better supporting the changing requirements of their valued workers in the post-COVID-19 pandemic setting. This newly redesigned product includes more optional and standard benefits for employers. Some of the prominent players in the global critical illness insurance market include:

• Allianz

• China Life Insurance Company

• Aflac Incorporated

• Aegon

• Prudential

• AIG

• American Fidelity

• Aviva

• UnitedHealthcare

• Desjardins Group

Critical Illness Insurance Market Report Scope

Global Critical Illness Insurance Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global critical illness insurance market report on the basis of premium type, disease, type, and region:

• Premium Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Monthly

  • Quarterly

  • Half Yearly

  • Yearly

• Disease Outlook (Revenue, USD Billion, 2018 - 2030)

  • Cancer

  • Heart Attack

  • Stroke

  • Major Organ Transplant

  • Other Diseases

• Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Individual Insurance

  • Family Insurance

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

  • Middle East & Africa

    • South Africa