Russia Expanding Ageing Population Necessitates Health Insurance Coverage
The ageing population in Russia is driving the need for health insurance coverage as healthcare costs continue to rise and chronic diseases become more prevalent. Health insurance is becoming crucial for providing financial security and peace of mind during medical emergencies. Recognizing the importance of healthcare, the government offers tax exemptions on health insurance policies, making it an integral part of financial planning.
The rising prevalence of chronic diseases among the elderly population, including heart disease, cancer, type 2 diabetes, and arthritis, further emphasizes the need for health insurance. The number of individuals living with multiple chronic conditions is also increasing, fueling the growth of the health insurance market. For example, according to the World Population Prospects, the proportion of the global population over 65 is projected to rise from 9 percent in 2019 to 16 percent by 2050. This trend, coupled with the ageing population, will contribute to the expansion of the market as more people seek medical insurance and become aware of its importance.
The high healthcare costs, including medication prices, hospital admission fees, and the cost of various medical treatments, pose a challenge for the elderly population who may struggle to afford them. Insurance providers have raised the cost of insurance premiums in response to these rising costs. Many consumers worldwide have one or more chronic conditions, such as diabetes, Alzheimer's, or heart disease, which require expensive treatments. The high price of claim settlements remains a significant obstacle in the health insurance market.
Preferred provider organizations (P.P.O.s) are the market leaders in the health insurance sector, offering individuals greater freedom in choosing hospitals, doctors, and other benefits. Point-of-service (P.O.S.) plans, with their lower premiums compared to P.P.O.s, also contribute to the growth of the market. Health maintenance organizations (H.M.O.s) are known for their affordability and network providers, allowing individuals to select doctors within the network. However, the market share of exclusive provider organizations (EPOs) is smaller due to higher premiums and lower awareness among the population.
In Russia, robust government efforts are shaping the health insurance market. The government aims to lower the cost of insurance plans such as Medicare and Medicaid, expanding coverage for more people. Additionally, favorable healthcare reimbursement regulations and the high cost of medical supplies contribute to the market's growth in North America. Europe is expected to be the second-largest market, driven by strict government regulations mandating citizens to have health insurance and growing public awareness of its necessity. The Asia Pacific region is predicted to experience the fastest growth rate due to the increasing prevalence of chronic diseases, expanding private providers, and government initiatives. Latin America and the Middle East Africa are expected to have smaller market shares due to the low penetration of insurance companies, although government measures to implement affordable healthcare policies will increase the number of people seeking health coverage.
In the competitive landscape of the global health insurance market, key players include Aetna Inc., Allianz, Ping An Insurance (Group) Company of China, Ltd., Aia Group Limited, Assicurazioni Generali S.P.A., UnitedHealth Group, Aviva, Axa, Cigna, and Zurich. These companies are actively engaging in partnerships, alliances, and collaborations to expand their product offerings and cater to the evolving needs of the market.
Overall, the expanding ageing population in Russia necessitates health insurance coverage due to rising healthcare costs, increasing chronic disease prevalence, and the need for financial protection during medical emergencies. Health insurance plays a vital role in ensuring access to quality healthcare and providing individuals with peace of mind regarding their medical expenses.
