US Personal Accident and Health Insurance Segment to Reach USD 505.6 Billion in 2016, Forecasts Timetric03 Jan 2013 • by Natalie Aster
The US personal accident and health insurance segment accounted for a 27.4% share of the overall insurance industry’s written premium in 2011, with a value of US$418 billion. This segment recorded a CAGR of 5.7% during the review period (2007-2011). The growth can be attributed to the rising medical expenditure, rapidly growing ageing population and increasing demand for healthcare products in the domestic market. This was further supported by the country’s insufficient public healthcare programs including Medicare and Medicaid. The new report "Personal Accident and Health Insurance in the Philippines, Key Trends and Opportunities to 2016" by Timetric states that these factors, coupled with new healthcare reforms, are projected to support the segment over the forecast period (2012?2016). The personal accident and health insurance segment is expected to grow at a CAGR of 3.9% over the forecast period, to value US$505.6 billion in 2016.
Personal Accident and Health Insurance in the Philippines, Key Trends and Opportunities to 2016
Published: March, 2012
Price: US$ 1,950.00
New healthcare reforms to increase demand for health insurance policies
In March 2010, President Obama signed a healthcare reform bill: the Healthcare and Education Reconciliation Act of 2010, an amendment of The Patient Protection and Affordable Care Act (PPACA). The government made several changes in the existing healthcare system. According to the Patient Protection and Affordable Care Act (PPACA), it is compulsory for all individuals to obtain health insurance and applies penalties to those do not obtain the relevant coverage. In addition, the government has made it mandatory for establishments with 50 or more employees to provide health insurance coverage to workers. These laws are expected to be executed by 2014. It is likely to have positive impact on the private health insurance category, as individuals and corporates must obtain health insurance products in order to avoid penalties.
Large uninsured population yet to be served
According to the US Census Bureau in 2010, over 49.9 million people in America do not have access to health insurance products. The number of people covered under private health insurance schemes reached 195 million in 2010, representing 63.5% of the total population. The total number of people covered under governed programs such Medicare and Medicaid reached 95 million in 2010, accounting for 31% of the total population. This provides scope to private insurers to capitalize on the growth opportunity present in the segment.
Growing number of international travelers to enlarge travel insurance category
The number of outbound tourists from the US declined from 73.7 million in 2007 to 72.6 million in 2011 due to the global financial crisis in 2009 and high levels of unemployment recorded during the review period. However, economic and business conditions are gradually improving, therefore it can be expected that the Americans are likely to make overseas trips for personal and business purposes over the forecast period. As a consequence, the number of international travelers from the US is projected to increase from 72.6 million in 2011 to 86.1 million in 2016. The projected volume of internationals travelers is likely to support growth within the travel insurance category over the forecast period.
Ageing population to consume more health insurance policies
The US’s population is aging rapidly, and the proportion of people aged 65 or above measured 12.9% of the total population in July 2011. The 65+ age group increased from 37.9 million in 2007 to 40.1 million in 2011. The rapidly growing ageing population is expected to consume more private health insurance products due to end-stage renal diseases.
More information can be found in the report “Personal Accident and Health Insurance in the Philippines, Key Trends and Opportunities to 2016” by Timetric.
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