Market Insights Financial Insurances Non-life insurances

Health insurance - Canada

Canada

The Health insurance market market in Canada is expected to reach a projected market size (gross written premium) of US$36.86bn in 2024.
Furthermore, the average spending per capita in the Health insurance market market is estimated to amount to US$0.94k in the same year.
Based on the projected annual growth rate (CAGR 2024-2028) of 3.49%, the gross written premium is expected to increase, resulting in a market volume of US$42.28bn by 2028.
In global comparison, the United States is anticipated to generate the highest gross written premium, reaching US$1,607.0bn in 2024.
The rising demand for private health insurance in Canada is driven by the gaps in the public healthcare system.

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Analyst Opinion

The Health insurance market in Canada has been experiencing notable developments in recent years.

Customer preferences: Customers in Canada are increasingly seeking health insurance plans that offer comprehensive coverage for a wide range of medical services. They are also showing a growing interest in customizable insurance packages that can be tailored to their specific needs and preferences.

Trends in the market: One prominent trend in the Canadian health insurance market is the rise of digital health insurance platforms, allowing customers to conveniently access and manage their insurance policies online. Moreover, there is a noticeable shift towards preventive healthcare services, with more insurance providers offering coverage for wellness programs and health screenings.

Local special circumstances: In Canada, the public healthcare system covers essential medical services, but there are limitations and gaps in coverage, prompting individuals to seek private health insurance to supplement their healthcare needs. Additionally, the aging population in Canada is driving the demand for health insurance, as older individuals tend to require more frequent medical attention.

Underlying macroeconomic factors: The stable economic growth in Canada has contributed to an increase in disposable income levels, enabling more individuals to afford health insurance coverage. Furthermore, regulatory changes and government initiatives aimed at improving the accessibility and affordability of health insurance have played a significant role in shaping the market dynamics.

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.