Health insurance - South America | Statista Market Forecast

The Health insurance market market in South America is expected to reach a projected market size (gross written premium) of US$93.59bn by 2024.
The average spending per capita in the Health insurance market market is estimated to be US$226.50 in 2024.
The market is expected to grow at an annual growth rate (CAGR 2024-2029) of 1.24%, resulting in a market volume of US$99.54bn by 2029.
In comparison to other countries worldwide, the United States is projected to generate the highest gross written premium, amounting to US$1.7tn in 2024.
In South America, the market for health insurance is seeing a trend towards increased coverage for alternative medicine.

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

The Health insurance market in South America is witnessing significant growth and evolution, driven by various factors shaping the industry in the region.

Customer preferences: Customers in South America are increasingly valuing health insurance as a crucial investment in their well-being, leading to a rise in demand for comprehensive coverage plans. The shift towards preventive healthcare measures and a growing awareness of the benefits of health insurance are influencing customer preferences in the region.

Trends in the market: In Brazil, for example, the Health insurance market is experiencing a trend towards digitalization, with more insurers offering online services and telemedicine options to cater to the tech-savvy population. This trend is not only enhancing customer experience but also improving access to healthcare services, especially in remote areas.

Local special circumstances: In countries like Argentina and Chile, where public healthcare systems face challenges in providing adequate coverage, the demand for private health insurance is on the rise. This trend is driven by the desire for better quality healthcare services and shorter wait times, pushing individuals towards private insurance options.

Underlying macroeconomic factors: Economic stability and rising disposable incomes in countries like Colombia and Peru are contributing to the growth of the Health insurance market. As more people can afford health insurance premiums, the market is expanding rapidly, with insurers introducing innovative products to cater to different income segments. Overall, the Health insurance market in South America is experiencing a transformative phase, driven by changing customer preferences, market trends, local circumstances, and underlying macroeconomic factors.

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.

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