MOUNTAIN VIEW, Calif., Aug. 31, 2016 /PRNewswire/ -- The private healthcare insurance industry is becoming increasingly relevant following the World Health Organization's (WHO's) push for universal health coverage (UHC). A vast uncovered global population, along with inadequate government funding, make the private insurance market an extremely attractive destination for investors. China, India, Brazil, Russia and Mexico, with their high out-of-pocket (OOP) and private expenditure on healthcare, are particularly expected to draw substantial investments.
New analysis from Frost & Sullivan, Transformations in Global Private Health Insurance Models (http://frost.ly/q9), finds that North America is the largest private health insurance market, accounting for more than two-thirds of the global private insurance premium revenues, or $1.07 trillion in 2015. Europe came in a distant second with $189.54 billion, followed by Asia-Pacific with $124.07 billion, Latin America with $30.78 billion and Africa with $1.43 billion.
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"Several models of innovations for health insurance and adjunct sectors have emerged in different regions of the world, while some areas experience few innovations," states Frost & Sullivan Transformational Health Research Analyst Siddharth Shah. "Developing regions are increasing insurance familiarity and coverage with disease-specific insurance products and insurance as add-ons. The developed regions are incentivizing healthy behaviors with freebies and are rolling out e-Commerce initiatives."
The healthcare delivery space is witnessing numerous changes with the integration of care delivery, while insurers are keeping pace with these revolutions by engaging the services of some of the startups targeting the health insurance sector. Significantly, adjunct insurance sectors are turning to community and crowdsourced insurance, adding a fresh dynamic to the global market.
These large-scale transformations are forcing the health insurance industry to evaluate all aspects of its business models, policy holder engagement and plan structures. The major disruptions in private insurance relate to consumerism, Big Data and Analytics, chronic disease prevention management, mHealth tools and transition to value-based compensation. Among these, the most important changes are consumerism and transition to value-based compensation, as they compel insurers to alter their operational methods.
"Health insurance innovations are aimed more at operations that save costs and improve efficiencies, rather than at product customizations or market awareness and access," noted Shah. "Due to market disparities, the developed markets emphasize cost reduction, while the others focus on expanding coverage."
In the long term, most global health insurers are expected to harness the power of Big Data analytics to eliminate inefficiencies, make insight-backed decisions and design new products and services that can be profitable. Wearables, telehealth, mobile payments, data-security and other cutting-edge technologies too will play a huge role in the global insurer market.
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SOURCE Frost & Sullivan