Critical Illness Insurance Market Size, Share & Trends Analysis Report By Premium Type (Monthly, Quarterly, Half Yearly, Yearly), By Disease (Cancer, Heart Attack, Stroke, Major Organ Transplant, Other), By Type, By Region, And Segment Forecasts, 2023 - 2032

The global critical illness insurance market size was valued at USD 350.02 billion in 2022 and is projected to expand at a compound annual growth rate (CAGR) of 7.0% from 2023 to 2032.

Key Pointers

• The monthly premium segment dominated the market and captured for the largest revenue share of 44.74% in 2022. 
• The yearly premium segment is expected to acquire a significant revenue share in the market.
• The individual insurance segment dominated the market and captured for the largest revenue share in 2022. 
• The family insurance segment is expected to grow at a lucrative rate of 7.3% over the forecast period.
• The cancer segment dominated the market and captured for the largest revenue share of 32.24% in 2022.
• The heart attack segment is projected to advance at a significant CAGR over the forecast period.
• North America dominated the critical illness insurance market and captured for the largest revenue share in 2022.

Report Scope of the Critical Illness Insurance Market:

An increase in the demand for critical illness insurance has been attributed to a number of factors, including changes to healthcare insurance laws (ACA), altering employer benefit priorities, and new distribution methods. Moreover, the increasing prevalence of chronic diseases is also expected to drive market growth. According to the World Health Organization (WHO), globally, cancer will be the primary cause of close to 10 million deaths in 2020, or close to one in every six.

The outbreak of the COVID-19 pandemic had a favorable effect on the prospects for the market as consumers became more aware of the importance of having health insurance. Moreover, key entities are attempting to make their critical illness insurance plans more alluring in response to the COVID-19 pandemic, in order to attract more consumers. Several of them are changing their critical illness insurance policies to include SARS-CoV-2 diagnosis.

The number of illnesses covered by critical illness insurance policies is expanding, which is a key factor in the development of the critical illness insurance market. Key insurance providers are concentrating on including coverage for numerous new diseases. For instance, in March 2022, The Hartford launched a novel critical illness insurance policy that is intended to cover more medical disorders and offer a wider variety of benefits depending on how serious a diagnosis is for a particular person. The company expanded the coverage of health issues such as mental health conditions, birth defects, and infectious diseases (including COVID-19 hospitalization).

Moreover, growing awareness about critical illness insurance benefits and the increasing need for critical illness insurance due to the high cost of treatment are some of the factors boosting the market growth. According to Johns Hopkins University, around one in four persons in America, or 26% of those 18 years and older, are estimated to suffer from a mental condition each year. Serious mental illness costs the American economy USD 193.2 billion in lost earnings annually. Mental health problems accounted for three of the top five primary diagnoses for inpatient stays among people aged between 18 and 44 years in 2018, after removing hospitalization linked to maternity and neonatal stays.

Key Companies & Market Share Insights

Key players operating in the market are undertaking various strategic initiatives, such as collaborations, partnerships, new service launches, and geographical expansions, to strengthen their market presence. For instance, in May 2022, Aflac announced the launch of its novel redesigned Aflac Group Critical Illness Insurance to aid companies in better supporting the changing requirements of their valued workers in the post-COVID-19 pandemic setting. This newly redesigned product includes more optional and standard benefits for employers. Some of the prominent players in the global critical illness insurance market include:

• Allianz
• China Life Insurance Company
• Aflac Incorporated
• Aegon
• Prudential
• AIG
• American Fidelity
• Aviva
• UnitedHealthcare
• Desjardins Group

Critical Illness Insurance Market Segmentation: