Trends in the Demand for Medical Expense Insurance

The health insurance industry in Mexico is in constant growth, along with a rising demand for protection and prevention, with the number of insured individuals growing by 3% annually, according to AMIS, reaching 10.10% of the Mexican population insured by the end of 2023 (1). This growth represents a significant increase in demand for health insurance, driven also by a series of lessons learned in prevention from previous years and certain trends that reflect changes in health perceptions, technology, and the economic environment.

This phenomenon is not only redefining the insurance sector but also transforming the user experience in healthcare, which implies inevitable changes for insurers and providers alike, as well as new trends across the industry.

In this context, the first trend we’re seeing, and one that has gained strength in recent years, is the rise in health awareness. The pandemic led many people to reevaluate their health and well-being, driving higher demand for medical coverage, resulting in nearly 1 million more insured individuals in Mexico from 2020 to 2023 (2). Additionally, there’s greater awareness about the importance of healthcare, whether through preventive measures or treatment follow-ups.

Moreover, the aging of the population is another factor that has generated an urgent need for insurance, since it is expected that by 2050, people aged 60 or over will represent 28% of the total population (3), thus demanding products that adapt to chronic diseases, long-term care, and an extension of coverage by age. 

Another trend is product personalization, which has gained traction across all sectors, and insurance is no exception. Therefore, companies must consider a wider variety of products rather than offering a standard plan for all customers. Hand in hand, another trend is called Customer First, in which priority is given to improving customer experience through products and services tailored to their needs.

Something important to highlight is the digitalization of healthcare. Telemedicine and wellness apps continue to gain popularity among both patients and health professionals, encouraging new ways to interact with medical services. It’s no surprise that 52.4% of Mexicans use the internet to research their health or to look for health-related products (4), something that brands and professionals should embrace to more efficiently reach patients. In other words, telemedicine is one innovation that will not only remain relevant in the industry but also represents an opportunity to improve services and deliver significant health benefits.

Thanks to this, 2025 and much of 2026 will be characterized by advances in digitalization and telemedicine, with an evolution in the way services and care are provided to patients from a customer-focused perspective, making it an attractive option for the healthcare sector when it comes to managing hospitals, physicians, and patients. It’s important to highlight that these tools are meant to support health professionals and administrative bodies, who remain key and irreplaceable in-patient care, something that must always be kept in mind when innovating in such a human-centered field.

On the other hand, alliances between healthcare companies have experienced significant growth and these will continue to grow in the coming years. In such a demanding market, alliances between large, experienced companies and those focused on healthcare, but from a different perspective, will help expand the range of products and services, quickly meeting changing demand. This represents an advantage over those that react more slowly because they have to do all this work internally.

At the same time, government and regulatory initiatives also play a crucial role in support of private health companies. Many governments are promoting health policies that encourage the inclusion of medical insurance, increasing market penetration. This also represents an expansion of insurance coverage across different countries, opening up new market opportunities.

In this regard, to respond to and take advantage of these trends, innovation in insurance products is essential to meet new demands. Insurers are implementing advanced technologies, such as big data analytics and artificial intelligence, to personalize rates and coverage, and establish patterns that make it easier to identify risks within their policies, allowing users to access plans that are more appropriate to their specific needs and maintain their businesses' security.

We, as insurers, are responding to these trends by creating more flexible and adaptable products, offering policies that allow users to choose coverage based on their personal circumstances, including options for alternative medicine, mental health treatments, and telemedicine services.

In summary, the dynamics of demand for medical expense insurance are evolving rapidly, driven by health awareness, digitalization, a changing economic environment, and a market in constant demand. Insurers have the opportunity to innovate and adapt to these new realities, offering products that not only provide protection but also empower users on their path to better well-being. The key to success lies in understanding and anticipating customer needs in a constantly changing world.

Sources:

1 - https://amisprensa.org/public/documentos/presentacion-conferencia-amisseguro-de-gastos-medicos-10.pdf 

2 - https://amisprensa.org/public/documentos/presentacion-conferencia-amisseguro-de-gastos-medicos-10.pdf 

3 - https://www.scielo.org.mx/scielo.php?script=sci_arttext&pid=S1405-74252005000300002#:~:text=El%20envejecimiento%20de%20la%20poblaci%C3%B3n,ver%20en%20el%20cuadro%201. 

4 -  https://datareportal.com/reports/digital-2024-mexico