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Health insurance - Colombia

Colombia

The Health insurance market market in Colombia is expected to reach a projected market size (gross written premium) of US$12.73m in 2024.
Furthermore, the average spending per capita in the Health insurance market market is estimated to amount to US$0.24 in the same year.
It is projected that the gross written premium will display an annual growth rate (CAGR 2024-2028) of -9.31%, resulting in a market volume of US$8.61m by 2028.
When considering global comparison, the United States is anticipated to generate the highest gross written premium of US$1,607.0bn in 2024.
The health insurance market in Colombia is experiencing a surge in demand due to the country's growing middle class and increasing awareness of the importance of healthcare.

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Analyst Opinion

The Health insurance market in Colombia has been experiencing significant growth and development in recent years.

Customer preferences: Colombian customers are increasingly seeking comprehensive health insurance coverage that includes a wide range of services such as preventive care, specialist consultations, and hospitalization. There is a growing demand for customizable insurance plans that cater to individual needs and preferences.

Trends in the market: One notable trend in the Colombian health insurance market is the rise of digital health platforms and telemedicine services. Insurers are leveraging technology to provide convenient access to healthcare services, especially in remote areas where traditional healthcare infrastructure may be lacking. Additionally, there is a trend towards value-based care models that focus on improving health outcomes for patients while controlling costs.

Local special circumstances: Colombia has a universal healthcare system that provides basic coverage to its citizens. However, the public healthcare system faces challenges such as long wait times and limited access to specialized care. As a result, many Colombians are turning to private health insurance to supplement their healthcare needs and access higher quality services.

Underlying macroeconomic factors: The growing middle class in Colombia, coupled with increasing disposable income, has contributed to the expansion of the health insurance market. As more people are able to afford private insurance, the market is becoming more competitive with a wider range of options available to consumers. Additionally, regulatory reforms aimed at increasing transparency and consumer protection have helped boost confidence in the private health insurance sector.

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.