Wellness and Activity-Based Health Insurance Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030

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The global market value of wellness and activity-based health insurance market was USD 97.1 billion in 2022, and a CAGR of 12.1% is expected during the forecast period. It is a type of health insurance that integrates wellness activities and preventive health measures into a policy. It typically involves rewards or incentives for a policyholder who engages in healthy behaviors such as regular exercise, maintaining a healthy weight, or participating in wellness programs.

These incentives come in the form of premium discounts, cash rewards, or other benefits designed to encourage healthier lifestyles and ultimately reduce healthcare costs for both insurance companies and policyholders. Increasing health awareness among people is driving growth in the market significantly. Increasing awareness about health and wellness is driving the growth of the market significantly.


Impact of Covid-19

COVID-19 has had a negative impact on wellness and activity-based health insurance market. The shift in priorities during the pandemic was due to economic uncertainties. With stringent lockdown and social distancing, supply chain disruptions caused delays in every other field. Though people during the pandemic became more aware and started to prioritize health and wellness, the increasing number of wellness programs and activities that promote physical and mental well-being is driving the growth of the market significantly. With social distancing measures in place, there has been a surge in the use of digital health and wellness platforms, making it easier for insurers to implement and track activity-based incentives.

Some insurers have shifted their focus from traditional wellness activities, such as gym memberships, to promoting activities that are done at home or outdoors, such as virtual fitness classes and walking challenges. Economic uncertainties caused by the pandemic have compelled some people to opt for basic needs over wellness activities, potentially impacting participation rates in activity-based health insurance programs. People started to take care of their mental health more in comparison to the past after the pandemic. Increasing health and wellness programs all over the world are driving the demand for wellness and activity-based health insurance market.

Growth Drivers

Increasing awareness among people about their mental health and well-being is the main reason behind the growth in the market. With increasing awareness of health, there is a growing demand for insurance plans that incentivize healthy behaviors and lifestyles. Escalating healthcare expenses incentivizes insurers to find cost-effective ways to promote preventive care and a healthy lifestyle among their policyholders, which do lead to reduced healthcare utilization and costs in the long term.

Advancements in technologies such as wearable devices, mobile apps, and data analytics enable insurers to accurately track and incentivize healthy behaviors, making them easier to implement. Increasing consumer engagement in health and wellness activities, coupled with the desire for personalized healthcare solutions, does drive the demand for insurance plans offering incentives. Government initiatives and regulations promoting preventive care and wellness programs encourage insurers to invest in activity-based health insurance offerings, leading to broader adoption and growth in the market.

This combination of health and wealth is doing wonders for the people. Increasing demand for products that are beneficial for health is driving the growth of the market significantly. The rising growth of e-commerce and technological advancements all around the world is the key factor behind the significant growth in the market.

Segmentation

By Type

·         Individual Plans

·         Group Plans

Regional Outlook

·         Asia Pacific

·         North America

·         Europe

·         Latin America

·         Middle East and Africa

Wellness and Activity-Based Health Insurance Market by Type Segmentation

On the basis of type, the wellness and activity-based health insurance market is segmented into two types: individual and group plans. Individual plans are the leading segment and are expected to dominate the market. Group plans are also expected to dominate the market during the forecast period due to technological advancements.


The rise in awareness among consumers to attract new customers is the key reason behind the growth in the market. These factors are expected to boost global wellness. Increasing awareness among people about health and wellness is the key attribute of this market. Individual insurance plans are of the following types: fitness tracker integration plans, gym membership reimbursement plans, nutrition counseling coverage, wellness screenings and preventive care management, health coaching programs, incentive-based plans, telemedicine services, and mental health and stress management support.

Fitness tracker integration plans often integrate with fitness trackers or apps to monitor activity levels, steps taken, or exercise routines. Policy holders receive discounts or rewards for meeting certain activity goals. Gym membership reimbursement plans provide reimbursement for gym memberships or fitness classes. Nutrition counseling coverage plans offer coverage for nutrition counseling sessions or consultations with dietitians to promote healthy eating habits and weight management. Health coaching programs include personalized guidance and support for achieving health goals.

Regional Outlook

On the basis of the regions, the wellness and activity-based health insurance market is segmented into 5 parts: Asia Pacific, North America, Latin America, Europe, and the Middle East and Africa. North America is the leading segment, and it is expected to dominate the market during the forecast period. The presence of many key players in the region is the real cause behind the growth in the market.

Increasing disposable income and the increasing initiation of people towards a health-first approach are driving the market towards significant growth. Emerging economies like India, China, and Japan are witnessing growth due to rising disposable income and increasing urbanization. European countries like Germany, France, Italy, Turkey, Russia, and Ukraine are observing continuous growth in the market due to increasing awareness among people about health and wellness.


Emerging markets in the Latin American region have started showing interest in these types of policies. Regions with a less developed healthcare system or cultural barriers to preventive care notice lower adoption. The Middle East and Africa region is witnessing moderate growth during the forecast period due to poor healthcare infrastructure. African countries are less developed and witnessing slow growth.

Key Players

·         Anthem Inc

·         Cigna Corporation

·         Aetna Inc

·         Humana Inc

·         Kaiser Permanente

·         Blue Cross Blue Shield Association

·         Vitality Group

·         Oscar Health

·         United Health Group

·         Welltok Inc

·         Other Players

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