Hospital Daily Cash Benefit Insurance Global Market Report 2022

Major players in the hospital daily cash benefit insurance market are Cigna Corporation, AIA Insurance Group, UnitedHealth Group Inc., Allianz SE, Zurich Insurance Group Ltd., Express Scripts Holding Company, AXA, Aviva plc, Aetna Inc., and Apollo Munich Health Insurance.

The global hospital daily cash benefit insurance market is expected to grow from $36.15 billion in 2021 to $41.58 billion in 2022 at a compound annual growth rate (CAGR) of 15%. The market is expected to grow to $62.16 billion in 2026 at a compound annual growth rate (CAGR) of 10.6%.

The hospital daily cash benefit insurance market consists of sales of hospital daily cash benefit insurance by entities that are engaged in directly underwriting daily hospital cash plans that provide a lump sum amount in case of hospitalization and this amount can be used as per the liberty of the insured.

The main types of hospital daily cash benefit insurance are a rider, standalone cover, and part of health insurance.The rider refers to the hospital cash rider that provides a fixed benefit to the holder.

The various terms of coverage include lifetime coverage, term insurance.The different benefits included are emergency admission, accident, medical treatment, surgery.

The service providers involved are public and private.

North America was the largest region in the hospital daily cash benefit insurance market in 2021.Asia Pacific was the second largest market in hospital daily cash benefit insurance market.

The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

Rising out of the pocket health care expenditure is expected to drive the hospital’s daily cash benefit insurance market.Out-of-pocket payments (OOPs) are direct payments made by individuals to healthcare providers at the time of service use.

According to the Centers for Medicare and Medicaid Services (CMS) report on National Health Expenditures 2020, the expenditure grew to $4.1 trillion in 2020 and accounted for a GDP of 19.7%. During hospitalization, out-of-pocket hospital expenses include user fees, medicines, diagnostics, procedure charges, transportation, informal charges, and others that have to be borne by the insured. The hospital’s daily cash benefit insurance provides a certain fixed amount to the insured during their hospital stay, which the person is free to use as per his/her need. Hence, an increase in out of the pocket health care expenditure aids in the growth of the hospital’s daily cash benefit insurance market.

The inability to cover the complete medical treatment expenses is anticipated to hinder the hospital’s daily cash benefit insurance market’s growth.Hospital cash plans only provide a daily allowance through hospitalization instead, a health insurance plan provides more comprehensive coverage.

On average, the hospital’s daily cash benefit insurance provides the insured with an amount ranging from $100 to $3000 per day which is not sufficient for the complete coverage of the treatment making it a supplement to the health insurance plans. This scenario is likely to act as a hindrance to the growth of the market.

Companies are collaborating with digital payment platforms for providing hospital daily cash benefits to provide a simple and hassle-free claim process to policyholders for faster reimbursement.For instance, in July 2020, ICICI Lombard partnered with Phone Pe for offering hospital daily cash benefits to phone pe users.

Similarly, in October 2019, Religare Partnered with Ola and started the OlaMoney-Religare Hospicash Policy which offers the policyholder to avail the compensation of $70 per day of hospital cash for plans above $7000.

In January 2020, HDFC, an Indian-based provider of housing finance with a presence in banking, life and general insurance, asset management, venture capital, real estate, education, deposits, and educational loans, acquired a majority stake in Apollo Munich health insurance for $334 million.Through this acquisition, Apollo Munich health insurance is renamed HDFC ERGO health insurance to improve customer service experience with a wider range of products and a network of 10000+ cashless hospitals.

Apollo Munich health insurance is an India-based company formed by the collaboration between Apollo Hospitals and Munich which offers services such as life, health, accident, and travel insurance.

The countries covered in the hospital daily cash benefit insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.