About the report

This year has been nothing short of a challenge for the health insurance industry, as the COVID-19 pandemic continues to make shockwaves across the world. With that said, there have also been exciting developments in the form of technological innovation.
Join us in this report as we offer a bird’s eye view of global trends and then zoom into region-specific trends and challenges, analyzing their impact on individuals, businesses, and employee benefits.
Our report begins with a short keynote by CEO and Founder, Neil Raymond, and continues with the following sections:
Pacific Prime - Regional health insurance trends across five continents
Europe
The Americas
The Middle East
Asia-Pacific
Africa

Regional changes and trends

Please click on the region you would like to learn more about:

Asia-Pacific

Characterized by an aging population, coupled with the impacts of the pandemic, we’re likely to see an acceleration of telehealth and digital innovation in Asia-Pacific. Mental health claims and delayed treatment will also remain a concern for insurers going forward. Meanwhile, economic uncertainty has increased demand for insurance products in countries like China, Singapore, Thailand, etc.

Update from Pacific Prime: We’ve acquired insurtech CXA’s brokerage arms in Hong Kong and Singapore, and incorporated their industry-leading flex benefits capabilities into our offerings for corporate clients.

The Middle East

Pandemic-related economic slowdown in the Middle East has negatively affected insurers, who are investing in technology to meet consumers’ expectations of an enhanced service offering. When it comes to government regulation, several countries like the UAE, Bahrain, Qatar, and Saudi Arabia have launched mandatory health insurance to meet the long-term healthcare needs of their population. Investment in healthcare facilities is also likely to shine the spotlight on the UAE’s medical tourism sector in 2021.

Africa

Africa’s insurance market is inconsistent. 91% of premiums are concentrated in 10 countries, and South Africa accounts for 70% of total premiums. Compared to other regions, Africa’s insurance market is also relatively immature - but there is scope for growth. Digital innovation will likely propel this growth, particularly as the pandemic has accelerated the shift to digital and remote channels. Mobile apps will be a focus for insurtech companies in the region.

Europe

Across Europe, insurers’ profitability was high for countries where the state shouldered most of the pandemic-related costs. However, we’re also witnessing patients delay medical treatment due to the pandemic. In some countries like the UK, the National Health Service (NHS) has been backlogged, which may increase demand for private health insurance.

The Americas

In the US, the Affordable Care Act (ACA) makes a comeback, and the American Rescue Plan is rolled out to battle the pandemic and boost insurance coverage rates. Drug spending also continues to rise - especially concerning patented speciality drugs in Canada. Elsewhere in Latin America, insurers are customizing plans for a fast-growing market of working and middle-class population - amidst a backdrop of prevalent health conditions.

What is the state of health insurance globally?

Let’s take a deeper look at the aforementioned global changes and trends to gain a more thorough understanding.

1. Insurers and clients continue to cope with the financial impact of COVID-19

Insurers
Insurers

Against the backdrop of geopolitical tensions, insurers will need to navigate the tightening regulatory and reporting requirements.

Individuals
Individuals

Given rising unemployment and economic uncertainty, many individuals are facing pandemic-related hardships. In this context, insurers will need to proactively identify and engage with these individuals.

Companies
Companies

Dampened business confidence has lowered budgets, and insurers will need to suggest ways for companies to optimize group health plans. Employee benefits specialists will also play a vital role in analyzing a company’s claim data for effective decision making.

Most insurers will cover pandemics
In the post-COVID-19 world, most regions (with the exception of Europe) are expected to see fewer pandemic-related exclusions.
Pre-COVID-19

27%

of insurers excluded coverage
during a pandemic

Pre Covid-19
Post Covid-19
Post-COVID-19

8%

of insurers are expected to exclude
coverage during a pandemic

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2. Major healthcare challenges and trends

National health systems will adopt new frameworks to learn from the pandemic

National health systems will adopt new frameworks to learn from the pandemic

Telehealth will rise in popularity

Telehealth will rise in popularity

Advancement in genomics and gene editing will lead to new cures

Advancement in genomics and gene editing will lead to new cures

AI and Blockchain usage will facilitate better healthcare and outbreak management

AI and Blockchain usage will facilitate better healthcare and outbreak management

Cyber security will need to be prioritized as healthcare providers rely on technology

Cyber security will need to be prioritized as healthcare providers rely on technology

Healthcare experience will become vital

Healthcare experience will become vital

And more
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3. Impact of COVID-19 on the insurance industry
Delayed care

Patients have delayed seeking healthcare due to the pandemic, which will increase healthcare claims for insurers further down the line.

Delayed care
Mental health conditions
Mental health conditions

The burden of mental health conditions on insurers is expected to grow due to:

Loneliness arising from lockdowns and social distancing measures

Loneliness arising from lockdowns and social distancing measures

Anxiety surrounding the fear of getting COVID-19

Anxiety surrounding the fear of getting COVID-19

Financial woes amidst economic uncertainty

Financial woes amidst economic uncertainty

And more
Telehealth adoption for mental health
Pierre de Mirman
A word from our headquarters in Hong Kong:

"We have seen a spike in mental health claims due to COVID-19-related restrictions and border closures. International firms have also seen a higher number of resignations in Hong Kong, presumably because expats are relocating back home to be with family during these strange times."

- Pierre de Mirman,
Deputy Global CEO at Pacific Prime

Virtual consultations for mental health
Virtual consultations
for mental health

0% Increase

Virtual consultations for physical health
Virtual consultations
for physical health

0% Increase

Global healthcare and insurance costs
Globally projected healthcare benefits costs are expected to rebound to 8.10% in 2021.

0%

0%

0%

2019

2020

2021

Health insurance premium costs are also expected to surpass last year’s increase in the approaching 2021-22 cycle.
To learn more about the cost of health insurance, you can check out our Cost of Health Insurance Report 2020-2021.
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Download the State of Health Insurance Report 2020-2021

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