January 28, 2020

International health insurance demand and future evolution

Share on facebook
Share on twitter
Share on linkedin
Share on email

In Short

The economics of health is different, and complicated by adverse selection and moral hazard issues.
International health insurance demand and future evolution
Share on facebook
Share on twitter
Share on linkedin
Share on email

Highlights:

  • The economics of health is different, and complicated by adverse selection and moral hazard issues.
  • At the global level, total health expenditure (HE) is growing faster than GDP, and increasing more rapidly in low and middle income countries (close to 6% annual growth on average) than in high-income countries (4%).
  • In Europe the stability in the HE growth rate reflects a rising coverage gap, only partially offset by private insurance (now €140 billions); high heterogeneity among countries reflects differences in public vs. private coverage.
  • There is a statistically stable long-term link between national income and private health insurance. The average income elasticity of private health insurance is significantly higher than one. So, on average and net of other factors, the importance of private health insurance is bound to grow along with economic development.
  • Empirical evidence for Italy shows that Voluntary Health insurance (VHI) is driven by income, households size, sex, age and education. The subscription to term life insurance on the household head is strongly and positively correlated to that of health insurance.

Read the full publication below.

INTERNATIONAL HEALTH
INSURANCE DEMAND
AND FUTURE EVOLUTION

Also interesting

EU flag green
July 26, 2021
Focal Point

ECB greening of the credit market to start in 2022

triple peak
July 23, 2021
Market Perspectives

Market Perspectives ǀ Overfretting about the triple peak

European-Central-Bank-in-Frankfurt_web
July 22, 2021
Market Commentary

ECB sends a dovish message as new strategy increases threshold for raising rates