Written premium sales in personal accident and health (PA&H) in North America are projected to grow from $1.2 trillion in 2021 to $1.5 trillion in 2026, according to a new report from GlobalData.
The report, ‘Personal Accident and Health Insurance Market to 2025’, finds that this is largely due to an increase in health insurance awareness and rising healthcare costs, following the COVID-19 pandemic.
This growth is also supported by the recovery in employment, easing of travel restrictions, and double-digit enrolments in the Medicaid program, which increased the demand for PA&H policies.
Katam Prasanth, Insurance Analyst at GlobalData, comments: “A prime focus area for PA&H insurers will be the changed abortion rules and regulations in North America following the US Supreme Court’s decision to overturn Roe v Wade.”
“With 50% of the US states expected to enact the ruling, insurers will have to amend their policies to accommodate this change.”
“Canada accounts for a 1.6% share of the regional PA&H premiums. Rising healthcare costs have created demand for private insurance to supplement healthcare services not covered by public health schemes such as prescription drugs, dental, vision, and hospitalization.”
Other findings from the report include that packaged plans are expected to emerge as a prominent driver of growth in the sector. And over 2021–26, the PA&H insurance market in Canada is estimated to grow at a CAGR of 5.9%.
Mexico is the fastest growing market with 19.3% growth in 2021, as pandemic-driven insurance awareness helped increase health insurance demand. The industry is expected to grow at a CAGR of 8.1% over 2021–26.
Prasanth adds: “In addition to the rise in healthcare costs, digitalization in healthcare, increased uptake for telehealth services propelled by the pandemic, and mental health awareness also supported the growth of PA&H insurance in the region.”
“The North American PA&H insurance market is expected to continue to grow over the next five years and see more development encompassing digitalization and customization to address the rising medical costs. However, regulatory developments related to the recent ruling on abortion ban and recession concerns from the ongoing Russia-Ukraine crisis could further impact its growth.”
