The recent IVASS Statistical Bulletin, "Insurance Activity in the Health Sector (2018-2023)," provides an in-depth analysis of the performance of the insurance sector within the health sector, offering essential data for insurance companies to guide their operational and compliance strategies.
Healthcare Spending and Regulatory Impacts
In 2023, total healthcare spending in Italy amounted to €176.1 billion, representing 8.3% of GDP, with a slight decrease from 8.8% in 2022. Public spending accounted for 74% of the total, while out-of-pocket spending was 23.1%. Expenditure intermediated by health funds and insurance companies represented 0.3% of GDP. These data indicate stability in healthcare spending, but with a slight decline relative to GDP, suggesting a potential review of pricing policies and insurance offerings to maintain competitiveness in the market.
Growth of the Health Insurance Sector
The premium collection in the health insurance branch increased by 10.9% in 2023, reaching €3,926 million, and by 11.6% in the first half of 2024. The accident insurance branch also showed growth of 2.4%, with premiums amounting to €3,499 million in 2023. This positive trend highlights the expansion of the health insurance market, offering opportunities for the introduction of new products and services aimed at meeting emerging consumer needs.
Market Concentration and Legal Implications
In the health insurance branch, the top five companies hold 66% of the premiums, while the top five insurance groups control 80% of the market. This high concentration raises concerns related to competition and antitrust regulation, requiring companies to closely monitor existing regulations and adopt transparent business practices to avoid potential conflicts with regulatory authorities.
Prevalence of Collective Policies
Health insurance policies are mainly underwritten through health funds (51.8% of the total), while individual policies represent 36.9% of the market, up from 35.6% in 2022. This trend underscores the importance of collective policies in the health insurance market, suggesting that companies develop customized offerings for groups and organizations to attract and retain a broader customer base.
Increase in Claims and Their Contractual Management
The number of claims in the health insurance branch increased by 11.5%, while the average cost slightly decreased (-1.6%). The average premium rose to €191 in 2023. This increase in claims frequency requires companies to review their underwriting and risk management policies, implementing effective strategies for claims prevention and management to maintain financial sustainability and competitiveness in the market.
Evolution of the Accident Insurance Branch
The premiums collected in the accident insurance branch increased by 2.4% in 2023, with an increase in the average premium to €61.4. The combined ratio remained stable at 78.0%, indicating balanced technical management. However, companies should closely monitor the combined ratio trend, as an increase may signal the need to review pricing policies or claims management to maintain the branch's profitability.
Conclusions
The health insurance sector is experiencing a growth phase, with significant opportunities for insurance companies. However, it is essential to address challenges related to market concentration, rising claims, and regulatory implications. Companies should adopt effective risk management strategies, ensure compliance with current regulations, and develop innovative products to meet the evolving needs of consumers.
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