Health insurance - Australia & Oceania

The Health insurance market market in Australia & Oceania is projected to reach a market size (gross written premium) of US$28.03bn in 2024.
The average spending per capita in the Health insurance market market is expected to amount to US$645.40 in 2024.
Looking ahead, the market is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 3.46%, resulting in a market volume of US$33.23bn by 2029.
In global comparison, the United States is expected to generate the highest gross written premium in the Health insurance market market, reaching US$1.7tn in 2024.
The introduction of a universal healthcare system in Australia has led to a surge in demand for private health insurance.

Definition:

Health insurance is a financial arrangement in which individuals or groups pay regular premiums to a provider, typically an insurance company. In exchange for these premiums, the insurer offers coverage and financial assistance for various healthcare-related costs, including but not limited to medical consultations, hospitalization, prescription medications, and other medical services. According to our current definition, the health insurance market includes voluntary health insurances.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, and the share of insureds in the total population for over 50 countries.

Voluntary health insurance contributions

Compulsory health insurance contributions
Government schemes
Out-of-pocket payments
Reinsurance

Over the past few years, the Health insurance market in Australia & Oceania has been experiencing significant growth and development.

Customer preferences: Customers in Australia & Oceania are increasingly seeking comprehensive health insurance coverage that includes a wide range of benefits such as hospital care, specialist consultations, and prescription medications. There is a growing demand for personalized and flexible insurance plans that cater to individual healthcare needs. Additionally, customers are placing a greater emphasis on digital services and online platforms for easy access to information, claims processing, and customer support.

Trends in the market: One notable trend in the Australian health insurance market is the rise of value-based insurance design, where insurers are focusing on improving the quality of care and health outcomes for policyholders. This approach involves incentivizing customers to make healthier choices and seek preventive care to ultimately reduce healthcare costs. Moreover, there is a trend towards increased collaboration between health insurers and healthcare providers to streamline services and enhance the overall customer experience.

Local special circumstances: In Australia, the government plays a significant role in shaping the health insurance market through policies and regulations. The introduction of initiatives such as the Private Health Insurance Reforms has influenced the market dynamics by promoting transparency, affordability, and consumer protection. Additionally, the presence of a strong public healthcare system, Medicare, impacts the demand for private health insurance and drives competition among insurers to differentiate their offerings.

Underlying macroeconomic factors: The steady economic growth and rising household incomes in Australia & Oceania have contributed to the increasing affordability of health insurance for individuals and families. As disposable incomes grow, more people are able to invest in comprehensive health coverage, driving market expansion. Moreover, the aging population and changing healthcare needs have led to a higher demand for health insurance products and services, prompting insurers to innovate and adapt to evolving market trends.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.