Germany Health And Medical Insurance - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2024 - 2029

The German health and medical insurance market has generated revenue of USD 83 million in the current year and is poised to register a CAGR of 4% for the forecast period.

The COVID-19 pandemic affected the German health and medical insurance industry, as there was an increase in claims during the pandemic. Moreover, some companies leveraged the challenge into an opportunity by inducing insurance policies related to the pandemic in their portfolios.

Health insurance is mandatory in Germany. Approximately 86 percent of the population is enrolled in statutory health insurance, which provides inpatient, outpatient, mental health, and prescription drug coverage. The administration is handled by nongovernmental insurers known as sickness funds. The government has virtually no role in the direct delivery of health care. Sickness funds are financed through general wage contributions (14.6%) and a dedicated supplementary contribution (1% of wages, on average), both shared by employers and workers. Copayments apply to inpatient services and drugs, and sickness funds offer a range of deductibles. Germans earning more than USD 68,000 can opt out of SHI and choose private health insurance instead. There are no government subsidies for private insurance.

The market is driven by an increase in the overall health expenditure and rising medical costs, rising disposable incomes across different economic classes, increasing stress on the public to attain Universal Health Care coverage to meet all kinds of healthcare needs, increasing demand from the healthcare sector, population growth, demographic shifts, and the unhealthy lifestyle of the public.

The increased use of modern technologies to improve claim management services allows insurance firms to speed up the patient's payment lifecycle more efficiently and prevent fraudulent claim settlement activities. In addition, an increase in the number of diseases and accidents and a rise in awareness of health insurance in rural regions are driving the industry forward. Many operational challenges within the private insurance sector lead to inequalities in healthcare coverage.

Germany Health & Medical Insurance Market Trends

Increase in Usage of Advanced Technologies is Driving the Insurance Market

The administration of health insurance claims has improved in Germany. This is due to the use of Nuxeo, a healthcare claims management software, by health insurance companies across Germany to streamline the medical claims process. By using insurance claim management software, insurance firms may shorten the time it takes for patients to pay and stop fraudulent claim settlement operations. Additionally, the increased use of cutting-edge technologies in claim management systems, such as artificial intelligence and machine learning, to provide reasonable insurance premiums accelerates the selling of health insurance plans among consumers.

Additionally, as wearable devices like fitness trackers, smart watches, wearable ECG monitors, and wearable blood pressure monitors become more popular among consumers, insurance companies can gather a tonne of information about the health of their insured and enhance claim processing. As a result, German market growth is accelerating due to health insurance companies' usage of advanced technologies.

Developments in Legislature to Boost Market

The recent legislative changes in the country's health code are one of the major driving aspects of the market in Germany over the forecast period. Aside from encouraging the increasing use of telemedicine and mHealth, the bill includes essential measures for electronic health records (EHR). For example, the new legislation states that all individuals covered by statutory health insurance (SHI) will have access to electronic health records. Nearly 90% of the German population is covered by statutory health insurance (SHI), with the remaining 10% covered by private insurers, who are also expected to reimburse various smart types of healthcare solutions under the new law, which is expected to drive the adoption in Germany. As a result, significant R&D investments and increased participation of major and emerging players in the development of new technologies are likely to drive market expansion over the forecast period.

Germany Health & Medical Insurance Industry Overview

The report covers major international players operating in Germany's health and medical insurance market. Regarding market share, some of the major players currently dominate the market, like AOK, Techniker Krankenkasse (TK), Allianz, Barmer, DAK, Debeka, Gothaer Group, and AXA, among others. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and tapping new markets.

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• The market estimate (ME) sheet in Excel format
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