In the United States, the annual price of health insurance declined by 33.6 percent in the last 12 months which ended in August 2023 after rising by 24.3 percent in the previous year. Over the provided time interval, health insurance prices increased at an average inflation rate of approximately five percent. This statistic shows the annual inflation rate of health insurance prices in the U.S. from 2007 to 2023.

Graph and download economic data for Producer Price Index by Industry: Premiums for Property and Casualty Insurance: Premiums for Private Passenger Auto Insurance (PCU9241269241261) from Jun 1998 to May 2025 about property-casualty, premium, passenger, insurance, vehicles, private, PPI, industry, inflation, price index, indexes, price, and USA.

Graph and download economic data for Consumer Price Index for All Urban Consumers: Tenants' and Household Insurance in U.S. City Average (CUUR0000SEHD) from Dec 1997 to May 2025 about insurance, urban, households, consumer, CPI, inflation, price index, indexes, price, and USA.

Graph and download economic data for Producer Price Index by Industry: Premiums for Property and Casualty Insurance: Premiums for Other Property and Casualty Insurance (PCU9241269241267) from Dec 2003 to May 2025 about property-casualty, premium, insurance, PPI, industry, inflation, price index, indexes, price, and USA.

This statistic shows the Consumer Price Index (CPI) of insurance in the United Kingdom (UK) as an annual average from 2008 to 2024, where the year 2015 equals 100. In 2024, the annual average price index value of insurance was measured at 177.3. This figure takes into consideration the price of house contents insurance, health insurance and transport (vehicle) insurance.

Graph and download economic data for Producer Price Index by Industry: Premiums for Property and Casualty Insurance: Premiums for Commercial Auto Insurance (PCU9241269241263) from Jun 1998 to May 2025 about property-casualty, premium, insurance, vehicles, commercial, PPI, industry, inflation, price index, indexes, price, and USA.

United States - Producer Price Index by Industry: Premiums for Property and Casualty Insurance: Premiums for Commercial Auto Insurance was 131.41500 Index Jun 1998=100 in May of 2025, according to the United States Federal Reserve. Historically, United States - Producer Price Index by Industry: Premiums for Property and Casualty Insurance: Premiums for Commercial Auto Insurance reached a record high of 131.41500 in May of 2025 and a record low of 100.00000 in July of 1998. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Producer Price Index by Industry: Premiums for Property and Casualty Insurance: Premiums for Commercial Auto Insurance - last updated from the United States Federal Reserve on July of 2025.

The annual price of medical care in the U.S. decreased by one percent in the past 12 months which ended in August 2023, a significant decrease from the previous year. Over the provided time interval, medical care costs increased at an average inflation rate of 3.5 percent. This statistic shows the annual inflation rate of medical care prices in the U.S. from 2000 to 2023.

In June 2023, the cost of inpatient hospital services in the United States had increased by 3.7 percent in comparison to June 2022. On the other hand, health insurance costs had decreased by roughly 25 percent compared to the previous year. This statistic shows the current inflation rate of medical care price in the U.S. in June 2023, by category.

Approximately half of UK insurance customers were likely to cut their spending on insurance in 2022. Based on the survey conducted among adult insurance owners, the share of respondents who would very likely to cut spending on insurance due to higher cost of living was ** percent and a further ** percent said that they were somewhat likely to do so.

UK insurance customers were most likely to cut their spending on travel insurance due to rising inflation, rather than other types of non-mandatory insurance. Based on the survey conducted among adult insurance owners, the share of respondents who would cut travel insurance due to higher cost of living was 18 percent. This was followed by home contents insurance, with 17 percent of respondents deeming it expendable.

Health and Medical Insurance Market Outlook

The global health and medical insurance market size was valued at approximately $2.8 trillion in 2023 and is projected to reach around $4.5 trillion by 2032, growing at a compound annual growth rate (CAGR) of 5.4% during the forecast period. This robust growth can be attributed to a combination of factors, including rising healthcare costs, increasing awareness about the importance of health insurance, and an aging global population. The market's expansion is further supported by technological advancements that streamline the insurance process and enhance customer experience.

One of the primary growth drivers in this market is the escalating cost of healthcare services worldwide. Medical inflation is outpacing general inflation, leading to higher out-of-pocket expenses for individuals. This has created a significant demand for health and medical insurance as a financial safety net. Furthermore, advancements in medical technology and the introduction of new treatment methods are contributing to higher healthcare costs, which in turn boosts the demand for insurance coverage. Governments and private entities are increasingly collaborating to make health insurance more accessible and affordable, thus driving market growth.

Another crucial factor contributing to the market's growth is the increasing awareness and understanding of health insurance benefits among the global population. With the proliferation of information through digital media and government initiatives, more people are becoming aware of the financial and health security that insurance provides. Educational campaigns and policy reforms are playing a pivotal role in educating the masses about the necessity of health insurance, thereby leading to higher enrollment rates. Additionally, employers are also recognizing the importance of offering health benefits to their employees, which further adds to the market's growth.

The aging global population is another significant driver for the health and medical insurance market. As the population ages, the prevalence of chronic diseases and the need for long-term care increase. Older adults are more likely to require frequent medical attention, making health insurance a crucial component of their financial planning. This demographic shift is particularly pronounced in developed countries, but emerging markets are also beginning to experience similar trends. Consequently, insurance providers are developing specialized products to cater to the needs of an aging population, thereby expanding their customer base.

Regionally, the market growth is expected to vary significantly. North America currently dominates the market, thanks to high healthcare costs, comprehensive insurance plans, and government mandates like the Affordable Care Act. However, the Asia Pacific region is anticipated to witness the highest growth rate during the forecast period. This can be attributed to improving economic conditions, increased healthcare spending, and growing awareness about health insurance. Countries like China and India are implementing extensive healthcare reforms, making insurance more accessible to their vast populations. Europe and Latin America are also expected to show steady growth, supported by government initiatives and increasing private sector participation.

Type Analysis

The health and medical insurance market can be segmented by type into individual health insurance, family health insurance, critical illness insurance, and others. Individual health insurance plans are designed to cover a single person, offering customized coverage based on personal health needs. This segment is experiencing significant growth due to the increasing number of self-employed individuals and freelancers who require personal health coverage. Additionally, the rise in single-person households is contributing to the demand for individual health insurance plans.

Family health insurance plans cover the entire family under a single policy. These plans are becoming increasingly popular as they offer comprehensive coverage for all family members, often at a lower cost compared to purchasing individual policies for each member. The convenience and cost-effectiveness of family health insurance plans are driving their adoption, especially among young families who are looking to secure their health future. Moreover, insurers are offering flexible plans that can be tailored to meet the specific health needs of families, further boosting this segment.

Critical illness insurance is another vital segment

Between January 1, 2023, and March 19, 2023, prices of products in the home care category, such as laundry, air fresheners, and household cleaning items in the United States saw changes but remained inflationary where the base was 100. As of March 19, 2023, the price inflation of such products had an index value of 113. A level above 100 was considered to be inflationary, whereas a level below 100 denoted deflation.

According to Cognitive Market Research, Health Insurance Market Size will be USD XX Million in 2025 and is set to achieve a market size of USD XX Million by the end of 2033 growing at a CAGR of XX% from 2025 to 2033.

North America region dominated the market and accounted for the highest revenue of XX% in 2024
Europe held share of xx% in the year 2024 
Asia-Pacific held significant share of xx% in the year 2024 
South America held significant share of xx% in the year 2024
Middle East and Africa held significant share of xx% in the year 2024 

Market Dynamics of Health Insurance Market

Key Drivers of Health Insurance Market

Rising Chronic Diseases Boosting the Health Insurance Market growth

The rising prevalence of chronic illnesses such as cancer, diabetes, heart disease, and stroke is significantly propelling the health insurance market. In the US alone, 1.7 million people are diagnosed with cancer annually. Over 38 million US adults suffer from diabetes, while nearly 100 million more have prediabetes, leading to greater demand for routine medical care and insurance coverage. Cardiovascular disease and stroke alone kill approximately 945,000 individuals each year with the healthcare system losing $254 billion annually and productivity worth $168 billion. These chronic conditions drive recurring healthcare needs, thereby making the need for health insurance products to absorb medical bills incurred earlier greater. Rising demand from chronic diseases and climbing healthcare costs is a decisive force on the global health insurance industry. Health insurance market growth is happening at a rapid rate in North America, where prevalence is high due to advanced healthcare infrastructure and greater awareness of insurance benefits. This trend points to the necessity of health insurance in protecting people against poverty and enabling access to treatment in the context of the increasing burden of chronic conditions worldwide.

Government Initiatives and Regulations

Government regulations such as the Affordable Care Act (ACA) in the U.S. and similar policies worldwide are driving health insurance enrollment by making insurance more accessible and affordable, often with subsidies and mandates for coverage.

Aging Population

The global aging population is one of the main drivers for health insurance as older individuals typically face higher healthcare needs, prompting a surge in demand for comprehensive health coverage.

Key Restraints of Health Insurance Market

Rising insurance premiums to hamper the health insurance market growth

The increasing cost of insurance premium particularly for chronic diseases is suppressing the development of the health insurance market. This is due to inflation raises the general cost of healthcare services like hospital stays, medical treatment, prescription drugs, and healthcare professionals' wages. For 2025, insurers have asked for an average premium increase of about 7%, largely driven by medical inflation that is higher than general economic inflation. Healthcare costs, especially hospital prices, have risen due to factors like hospital consolidation-which reduced competition-and workforce shortages that raise operating expenses. Additionally, the growing use of high-priced specialty drugs further boosts insurers' costs. Because insurers must cover these higher medical expenses, they pass on the greater expense to consumers in the form of higher premiums. For example, hospital systems have requested double-digit annual price increases, and the price of diagnostic and surgical procedures has soared over the past few years. Inflation also affects administrative and operational costs for insurers, which leads to premium hikes. From the consumer perspective, higher premiums reduce affordability, making health insurance harder to buy or maintain for individuals and families-especially those with low and moderate incomes. Unaffordable premiums discourage healthy individuals from enrolling, shrinking the risk pool and triggering further premium hikes, creating a cycle that destabilizes the market. Employers also face higher costs, which can translate into reduced benefits or a shift toward part-time work without insurance. Briefly, inflationary increases in healthcare costs directly elevate the premiums of health insurance, limiting access and affordability.

(Source:https://www.pwc.com/us/en/industries/health-i...

Consumer Price Index (CPI): West Java: ICFS: Insurance data was reported at 100.000 2018=100 in Dec 2023. This stayed constant from the previous number of 100.000 2018=100 for Nov 2023. Consumer Price Index (CPI): West Java: ICFS: Insurance data is updated monthly, averaging 100.000 2018=100 from Dec 2019 (Median) to Dec 2023, with 49 observations. The data reached an all-time high of 100.000 2018=100 in Dec 2023 and a record low of 100.000 2018=100 in Dec 2023. Consumer Price Index (CPI): West Java: ICFS: Insurance data remains active status in CEIC and is reported by Statistics of Jawa Barat Province. The data is categorized under Indonesia Premium Database’s Inflation – Table ID.IB012: Consumer Price Index: by Province: West Java.

Diverse service offerings and strategic consolidation efforts drive revenue growth. Various products cater to different age demographics, with younger buyers under 55 often securing policies early to lock in lower premiums and those between 55 and 65 contributing significantly because of optimal pricing. While adults over 65 have shown growth, high premiums and elevated risks limit their contribution. Through mergers, companies can pool resources, streamline administration and offer competitive premiums, reinforcing market concentration despite the competition from government substitutes like Medicaid. Industry revenue has been growing at a CAGR of 2.4% to a total of $25.6 billion in 2025 when revenue will jump by an estimated 4.0% in 2025 alone. Healthcare costs and consumer awareness are critical for sustaining growth, especially amid increased competition from substitute programs. Rising medical and facility care expenses lead insurers to adjust premiums to maintain revenue, potentially decreasing market demand. As wages for healthcare professionals climb, insurers are challenged to balance affordability with coverage options, mindful of claim denial rates and costs of appeals. Consumer education on the variety of policies available and the pricing implications is essential, as misunderstandings can deter purchases. By enhancing transparency and educating consumers about preventative care's significance, insurers can foster a committed customer base, thereby boosting long-term demand. Technological advancements and diverse policy offerings will drive demand and reduce costs, supporting profit. Larger insurers leverage their size to provide varied products, from hybrid plans to specialized coverage, appealing to consumer preferences. Medical and technological progress, such as AI-driven data analytics, promotes lower health payouts, better risk assessment and pricing precision. Also, advancements in preventive care and wellness programs can mitigate the need for expensive long-term care, reducing claim frequency and cost-balancing the increased duration of claims. These innovations, in concert, enable insurers to maintain competitive pricing, extend market reach and enhance profitability by attracting a broader customer base while managing changes in healthcare costs. Looking forward, industry revenue will climb at a CAGR of 3.1% through 2030 to total $29.8 billion, with profit to climb marginally during the outlook period.

This graph illustrates the Consumer Price Index (CPI) of automobile insurance in France from January 2020 to February 2024. In February 2024, the CPI reached 121.08.

The inflation rate for personal care in the European Union reached 2.1 percent on January 2025, representing a slight decline from the 4.2 percent rate recorded on the same month of the previous year. During January 2025, the inflation rate for the EU as a whole was 2.8 percent.

(CDID: L596) Quarter - Consumer price inflation time series Time series data for public sector finances and important fiscal aggregates, based on the new European System of Accounts 2010: ESA10 framework.

Inflation Nowcast: Contribution: Labour Market: Unemployment Insurance: Unemployment Rate data was reported at 0.000 % in 12 May 2025. This stayed constant from the previous number of 0.000 % for 05 May 2025. Inflation Nowcast: Contribution: Labour Market: Unemployment Insurance: Unemployment Rate data is updated weekly, averaging 0.000 % from Jun 2020 (Median) to 12 May 2025, with 259 observations. The data reached an all-time high of 12.920 % in 08 Apr 2024 and a record low of 0.000 % in 12 May 2025. Inflation Nowcast: Contribution: Labour Market: Unemployment Insurance: Unemployment Rate data remains active status in CEIC and is reported by CEIC Data. The data is categorized under Global Database’s United States – Table US.CEIC.NC: CEIC Nowcast: Inflation: Headline.