Germany Healthcare Insurance Market Analysis

Germany Healthcare Insurance Market Analysis


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German's healthcare insurance market is projected to grow from $74.16 Bn in 2022 to $116.43 Bn by 2030, registering a CAGR of 5.8% during the forecast period of 2022-2030. The main factors driving the growth would be the ageing population, technological advancements, rising healthcare costs and competition among insurers. The market is segmented by the component, provider, coverage, by health insurance plans and end-user. Some of the major players include HanseMerkur, Arag, Hallesche, SDK, uniVersa and Alte Oldenburger.

ID: IN10DEHS008 CATEGORY: Healthcare Services GEOGRAPHY: Germany AUTHOR: Neha Davda

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Germany Healthcare Insurance Market Executive Summary

German's healthcare insurance market is projected to grow from $74.16 Bn in 2022 to $116.43 Bn by 2030, registering a CAGR of 5.8% during the forecast period of 2022-30. Germany spent $4874.39 per person on healthcare in 2019, which was 28% more than the average for the EU of $3812. Germany spends most of its GDP (11.7%) on healthcare compared to other EU nations. Just 12.7% of people in the country pay for their own healthcare, which is far lower than the majority of other EU countries. This is due to the fact that the great majority of health costs in the EU are covered by public money.

One of the best healthcare systems in the world is found in Germany. The majority of German citizens and residents are covered by the government-run public health insurance program which is paid for by national taxes paid by the taxpayers. In turn, regardless of income or status, everyone gets access to high-quality, cheap healthcare. German private insurance is another option for certain people, particularly those with higher salaries or those who want to fill in any "gaps" left by state insurance.

Everyone who is a legal resident of Germany is required by law to obtain health insurance. Public or "statutory" health insurance (Gesetzliche Krankenversicherung) and private health insurance make up Germany's health insurance system (Private Krankenversicherung). The type of health insurance one can obtain is determined by his/her income.

Germany Healthcare Insurance Market

Market Dynamics

Market Growth Drivers

The German healthcare Insurance market is expected to be driven by factors such as:

  1. Ageing population- Germany's population is ageing, with a rising proportion of those over 60. Because they are more likely to need healthcare services and health insurance, this group has a higher demand for health insurance products
  2. Technological advancements- With several innovative medical procedures and technologies being created, Germany is a global leader in healthcare technology. Health insurers now have the chance to provide their clients with unique products and services
  3. Rising healthcare costs- A growing number of factors, including new technology, rising medicine prices, and an ageing population, are driving up the cost of healthcare in Germany. Health insurance options that can assist people and families in controlling healthcare costs are therefore required
  4. Competition among insurers- Germany has a large number of health insurance companies, which encourages competition. When insurers compete to stand out and win clients, this competition may spur innovation and product creation

Market Restraints

The following factors are expected to limit the growth of the healthcare insurance market in Germany:

  1. Increasing frequency of price adjustments- The expansion of clients in the German private health insurance sector's main product line will be significantly impacted by the frequency of price adjustments that result from continued low-interest rates
  2. Limited profit margins- Low-profit margins in the German health insurance industry can prevent insurers from making significant investments in cutting-edge products and services. This is partly because insurers are under pressure to maintain low premiums because of Germany's expensive healthcare system
  3. Regulatory environment- Germany's health insurance industry is heavily controlled, and insurers are required to abide by tight laws and regulations. This may restrict insurers' ability to generate novel goods and services and may make it more difficult for new competitors to enter the market

Competitive Landscape

Key Players

  • HanseMerkur (DEU)- Since 1969, HanseMerkur, a medium-sized personal insurer, has provided its clients with security, predictability, and reliability. Thanks to many acquisitions of existing client lists and its active sales efforts, this financially stable and growth-oriented company has acquired its current independent and strong position in the market and developed into an effective medium-sized personal insurer. Also, the HanseMerkur Insurance Group, through its subsidiary HanseMerkur Reiseversicherung AG, is Germany's second-largest travel insurer and the only independent insurance provider in Hamburg's financial district that is not a member of a network that covers the entire country
  • ARAG (DEU)- The largest family-owned business in the German insurance sector, ARAG has established a reputation for being a flexible, high-quality insurer. As the foremost legal insurer globally and a specialist in legal insurance, ARAG also provides its clients with appealing, needs-based products and services from a single source in the German composite, health, and old-age pension insurance markets
  • Hallesche (DEU)- HALLESCHE Health Insurance provides health insurance services. It offers care insurance, dental insurance, hospital supplementary insurance, international travel health insurance, and group insurance
  • SDK (DEU)- The Süddeutsche Krankenversicherung (SDK) was established in 1978 and has its corporate headquarters in Fellbach, close to Stuttgart. It comes in at number 15 on the list of premium income for German private health insurance firms and is a part of the SDK Group. They have a combined income of more than 800 Mn and employ about 800 people while insuring just over 600,000 clients
  • Alte Oldenburger (DEU)- Private health insurance provider Alte Oldenburger is situated in Vechta. The business provides private supplemental insurance, long-term care insurance that is required by law, and private health insurance

1. Executive Summary
1.1 Service Overview
1.2 Global Scenario
1.3 Country Overview
1.4 Healthcare Scenario in Country
1.5 Healthcare Services Market in Country
1.6 Recent Developments in the Country

2. Market Size and Forecasting
2.1 Market Size (With Excel and Methodology)
2.2 Market Segmentation (Check all Segments in Segmentation Section)

3. Market Dynamics
3.1 Market Drivers
3.2 Market Restraints

4. Competitive Landscape
4.1 Major Market Share

4.2 Key Company Profile (Check all Companies in the Summary Section)

4.2.1 Company
4.2.1.1 Overview
4.2.1.2 Product Applications and Services
4.2.1.3 Recent Developments
4.2.1.4 Partnerships Ecosystem
4.2.1.5 Financials (Based on Availability)

5. Reimbursement Scenario
5.1 Reimbursement Regulation
5.2 Reimbursement Process for Services
5.3 Reimbursement Process for Treatment

6. Methodology and Scope

Healthcare Insurance Market Segmentation

By Provider (Revenue, USD Billion):

It mainly includes healthcare insurance that provides safety against the increasing cost of medical treatments and in case of health emergencies such as critical illnesses. Hence, it is the best way to safeguard medical expenses.

  • Public
  • Private

By Coverage Type (Revenue, USD Billion):

In terms of sales and market share, it is anticipated to rule the market over the projection period. This is explained by a number of benefits provided by life insurance, including guaranteed death payout and permanent coverage. Additionally, investing in these kinds of plans enables working professionals to save taxes

  • Life Insurance
  • Term Insurance

By Health Insurance Plans (Revenue, USD Billion):

  • Health Maintenance Organization (HMO)
  • Preferred Provider Organization (PPO)
  • Exclusive Provider Organization (EPO)
  • Point of Service (POS)
  • High Deductible Health Plan (HDHP)

By Demographics (Revenue, USD Billion):

  • Minors
  • Adults
  • Seniors

There is a high prevalence of lifestyle disease in the adult population that can increase health risks in the future. The population is more prone to cardiac and other diseases that require hospitalization. Healthcare insurance plans for seniors are more of a necessity, especially in the case of retirement. Also, it carries various advantages such as no medical screening before buying plans, includes coverage of the outpatient department, and provides the benefit of fee annual checkups along with lifetime renewability.

By End-user (Revenue, USD Billion):

  • Individuals
  • ?Corporates

A large number of people buy individual health plans as they are also customizable. Also, it gives more control over deductibles, co-pays, and benefits limits and is not dependent on employment status.

Insights10 will provide you with the reports within 10 key parameters which are:

  1. Market Overview
  2. Market Growth Drivers & Restraints
  3. Epidemiology of Disease Type
  4. Market Segmentation
  5. Market Share
  6. Competitive Landscape
  7. Key Company Profiles
  8. Healthcare Policies & Regulatory Framework
  9. Reimbursement Scenario
  10. Factors Driving Future Growth

Based on our many years of experience, we believe that these are the parameters that are critical to decision-making for business stakeholders. Our focused approach to developing reports focused on 10 key parameters, enabled us to arrive at the name “Insights10”.

 

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Market Trends: We generally look at macro parameters and micro indicators. The macro parameters include changes in government policies, demand and supply of the market, government intervention programs, and major market share. The micro indicators are GDP growth, market size, market volume, etc. We also understand nuances specific to each country like the US, Canada, India, Germany, etc., and have worked across 60+ countries and hence not only understand global trends but how these differ by country, how payment models, market structure, cultural parameters, etc. differ in each country.

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The study on the market covers the analysis of the leading geographies such as Asia-Pacific, Africa, Europe, Middle East, North America, and  Latin America for the period of 2022 to 2030. The qualitative analysis covers the industry landscape and trends, market opportunities, competitive landscape, and policy and regulatory scenario, and the quantitative analysis covers different market estimates and forecasts.

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We make sure to finalize the numbers in alignment with the market research. Firstly, our internal experts ensure thorough validation and checking to ensure accurate and precise analysis and then validation is also done using a multiple-data analysis model. Two-level validation is done and entails the finalization of the report scope and the way of representation pattern.

 

 

Stage III: Interpretation and Presentation

Analysis & Interpretation: The information gathered is then analyzed and synthesized. The second series of interviews are done if necessary to check and validate. The future opportunities are analyzed by understanding product commercialization and many other factors. It also comprises the analysis of data discrepancies observed across various data sources. Information procured from secondary and primary results is then, interpreted by considering the following parameters: (a partial list)

  • Establishing market drivers and trends
  • Analyzing the regulatory landscape to understand future growth
  • Market Segment based analysis to obtain revenue/volume
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The foreign exchange rates are calculated on the respective dates and for the respective regions covered in the study.

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Last updated on: 09 June 2023
Updated by: Riya Doshi

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