Market Insights Financial Insurances Non-life insurances

Health insurance - Australia

Australia

The Health insurance market market in Australia is projected to reach a market size (gross written premium) of US$27.19bn in 2024.
In that year, the average spending per capita in the Health insurance market market is expected to amount to US$1.02k.
Looking ahead, the gross written premium is anticipated to show an annual growth rate (CAGR 2024-2029) of 3.38%, resulting in a market volume of US$32.11bn by 2029.
In global comparison, it is worth noting that the United States is expected to generate the highest gross written premium in the Health insurance market market, reaching US$1,708.0bn in 2024.
The Australian health insurance market is experiencing a growing demand for comprehensive coverage plans due to an aging population.

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Analyst Opinion

The Health insurance market in Australia has been experiencing significant growth and evolution in recent years.

Customer preferences: Customers in Australia are increasingly valuing comprehensive health insurance coverage that includes a wide range of services such as hospital stays, specialist consultations, and extras like dental and optical care. There is a growing demand for tailored health insurance plans that cater to specific needs and preferences of individuals and families.

Trends in the market: One of the key trends in the Australian health insurance market is the rise of digital health insurance platforms and services. Insurers are investing in technology to streamline processes, enhance customer experience, and offer more personalized services. Additionally, there is a trend towards value-based care and outcomes, with insurers focusing on preventive care and wellness programs to improve overall health outcomes for their policyholders.

Local special circumstances: Australia has a unique healthcare system with a mix of public and private providers. The government plays a significant role in regulating the health insurance market through initiatives such as the Private Health Insurance Rebate and the Medicare Levy Surcharge. These policies influence consumer behavior and the overall dynamics of the health insurance market in the country.

Underlying macroeconomic factors: The growing population, increasing life expectancy, and rising healthcare costs are driving the demand for health insurance in Australia. As the healthcare system continues to face challenges such as an aging population and chronic disease burden, individuals are turning to private health insurance to access timely and quality healthcare services. Moreover, changes in lifestyle patterns and a greater emphasis on health and well-being are shaping the health insurance market in Australia.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.