The Latin America health insurance market size was estimated at USD 86.4 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 5.2% from 2023 to 2030. The region's growing need for private health insurance coverage to cover expensive healthcare, rising income levels, and longer life expectancies are some factors driving the market growth. The COVID-19 outbreak has led to increased awareness about insurance among individuals. Insurance sectors in certain Latin American countries insurance sectors best performed during the pandemic. For instance, according to the trends reported by Fundación MAPFRE Canarias' 2020 report Puerto Rico showed the highest density (premiums per capita) indexes.
The COVID-19 pandemic has limited effect on Latin America's health insurance sector. Governments had dedicated a large portion of their budget to health care, leading to growth in the public segment of the market. Moreover, the closure of many healthcare facilities has reduced access to care for those dependent on government-funded insurance, particularly in rural areas. For example, due to limited resources, Peru has seen an increase in private health care and related insurance plans.
Type Insights
In 2022, the public type segment dominated the market and is projected to retain dominance throughout the forecast period. This is owing to many countries in Latin America, having government insurance programs that provide access to health treatment. The specifics of these programs vary from country to country, but they often aim to provide coverage for a wide range of healthcare services, including preventive care, primary care, and hospitalization.
Furthermore, the private insurance segment is expected to grow the fastest over the forecast period. Several factors, including rising earnings, an increase in the need for healthcare services, and a desire for additional healthcare coverage options, contributed to the rapid expansion.
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Country Insights
Brazil held the largest revenue share in 2022, attributed to the growing demand for insurance and high levels of government investments in the healthcare sector. This is further supported by growth in the private health insurance segment. For instance, according to the report "The Latin American Insurance Market" by Fundación MAPFRE Canarias, premiums contributions show year-over-year growth of 15.4% and 8.2% in 2015 and 2021, respectively.
Additionally, the demand for dental insurance in Brazil is boosting market expansion due to rising health consciousness. For instance, according to a June 2020 article by The Commonwealth Fund, in 2018, 9.6% of Brazilians had dental insurance, and 23% had private medical/hospital insurance, showing an increasing potential for dental insurance adoption that is anticipated to support market expansion.
Furthermore, with increased private insurance acceptance anticipated to boost market growth, Puerto Rico, in 2022, holds the second leading position in the market. According to the 2021 report titled "The Latin American Insurance Market" by Fundación MAPFRE Canarias, Puerto Rico has a penetration rate of 16.5% and a density (premiums per capita) of 5,421 dollars, the highest in Latin America, attributed to the anticipated rise in health insurance for the most underprivileged people, which is controlled by the private insurance sector but covered by government funds.
Additionally, according to the Fundación MAPFRE Canarias 2021 report, overall insurance was the business segment with the best performance during the COVID-19 pandemic. After Puerto Rico, Chile (3.6%), Brazil (3.1%), and Colombia (3.0%) had the highest penetration indexes above the regional average (2.98%).
Key Companies & Market Share Insights
The private health insurance market in Latin America is becoming highly competitive as companies use strategic initiatives such as alliances to grow their customer base and expand their market share. For instance, in February 2023, Bupa and MAPFRE allied to develop health insurance in Latin America, beginning in Peru and expanding to Paraguay and Uruguay. They intend to investigate opportunities in other countries as well. This regional alliance combines the strengths and experience of both companies to increase penetration of the health markets and provide access to top-level international medical care.
Furthermore, strategic mergers in the market are expected to consolidate the health insurance sector, enabling providers to widen their product reach and increase their revenue market share. For instance, UnitedHealth Group, one of the largest health insurers in the U.S., entered the South American market in 2012 by acquiring Brazil’s healthcare company, Amil. Furthermore, in January 2018, the company further penetrated the market by completing the acquisition of Empresas Banmédica, a major healthcare provider and insurer serving Chile, Peru, and Colombia. Some prominent players in the Latin America health insurance market include:
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