According to recent data, the United States has made significant progress in expanding access to healthcare through the Affordable Care Act (ACA) Marketplaces. As of December 23, 2023, over 20 million individuals have selected affordable health coverage through the ACA Marketplace, which is a record high. This includes 15.5 million plan selections in the 32 states using the HealthCare.gov platform for the 2024 plan year and 4.8 million plan selections in the 18 states and the District of Columbia with State-based Marketplaces (SBMs) that are using their own eligibility and enrollment platforms.
The ACA has been in place for over a decade. Since its implementation, the uninsured rate for all ages has fallen from 14.4 percent to 7.7 percent. Additionally, the uninsured rate for children has decreased from 7.6 percent to 4.9 percent. While the ACA has helped to expand access to healthcare, there are still challenges that need to be addressed. For example, the cost of healthcare remains a significant concern for many Americans, and some individuals may still struggle to afford coverage.
Despite these challenges, the insurance industry in the United States continues to evolve and innovate. Insurance companies are adapting to changing consumer needs and preferences, and new technologies are being developed to improve the efficiency and effectiveness of insurance products and services. As we move further into 2024, it will be interesting to see how the insurance landscape in the United States continues to evolve and what new developments will emerge.
Insurance Industry Overview 2024
The insurance industry in the United States continues to evolve and adapt to various market trends, regulatory changes, and technological advancements. In 2024, the industry is expected to continue on this trajectory, with several key developments shaping the landscape.
Market Trends
One of the biggest market trends in the insurance industry in 2024 is the continued consolidation of companies through mergers and acquisitions. According to Deloitte Insights, there were 449 M&A deals in the insurance sector completed globally in 2022, the highest in a decade. This trend is expected to continue as companies seek to expand their offerings and increase their market share.
Another trend that is expected to shape the industry in 2024 is the rise of insurtech companies. These companies use technology to disrupt traditional insurance models and offer new products and services. As per the EY Global Insurance Outlook, insurtech investment reached $4.36 billion in 2022, up from $2.7 billion in 2021. This trend is expected to continue in 2024 as insurtech companies gain more traction and market share.
Regulatory Changes
The insurance industry in the United States is subject to various regulatory changes at both the state and federal levels. In 2024, one of the most significant regulatory changes is the implementation of the National Association of Insurance Commissioners (NAIC) Insurance Data Security Model Law. This law requires insurance companies to establish and maintain a comprehensive information security program to protect sensitive data.
Another regulatory change that is expected to impact the industry in 2024 is the ongoing implementation of the Affordable Care Act (ACA). The ACA has led to significant changes in the health insurance market, including the expansion of Medicaid and the creation of health insurance marketplaces. These changes are expected to continue to shape the industry in 2024.
Technological Advancements
Technology is playing an increasingly important role in the insurance industry in the United States. In 2024, one of the most significant technological advancements is the use of artificial intelligence (AI) and machine learning. These technologies are being used to improve underwriting, claims processing, and customer service.
Another technological advancement that is expected to shape the industry in 2024 is the use of blockchain. According to KPMG, blockchain has the potential to disrupt the insurance industry by increasing transparency and reducing fraud. This technology is expected to be used in various areas, including claims processing and policy management.
Insurance Types and Coverage
Health Insurance
In the United States, health insurance is a type of insurance coverage that covers the cost of medical and surgical expenses incurred by the insured. Health insurance policies can be purchased by individuals, families, or groups, and are typically offered through employers or government programs.
There are several types of health insurance plans available, including Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), and Point of Service (POS) plans. Each plan has its own set of benefits, costs, and limitations.
Life Insurance
Life insurance is a type of insurance that pays out a sum of money to the designated beneficiaries upon the death of the insured. This type of insurance is typically purchased to provide financial security for loved ones in the event of the policyholder’s death.
There are two main types of life insurance policies: term life insurance and permanent life insurance. Term life insurance provides coverage for a specific period of time, while permanent life insurance provides coverage for the insured’s entire life.
Property and Casualty Insurance
Property and casualty insurance provides coverage for damage to property and liability for injuries or damage caused by the policyholder. This type of insurance is typically purchased by homeowners, renters, and businesses.
There are several types of property and casualty insurance policies, including homeowner’s insurance, renter’s insurance, and commercial property insurance. Each policy provides different levels of coverage and protection.
Auto Insurance
Auto insurance is a type of insurance that provides coverage for damage to a vehicle and liability for injuries or damage caused by the policyholder while driving. In the United States, auto insurance is required by law in most states.
There are several types of auto insurance policies, including liability insurance, collision insurance, and comprehensive insurance. Each policy provides different levels of coverage and protection.
Disaster and Catastrophe Insurance
Disaster and catastrophe insurance provides coverage for damage caused by natural disasters. These include hurricanes, earthquakes, and floods.
This type of insurance is typically purchased by homeowners and businesses in areas that are prone to natural disasters.
There are several types of disaster and catastrophe insurance policies. These include flood insurance, earthquake insurance, and hurricane insurance. Each policy provides different levels of coverage and protection.
Feranmi Nureni 
Zara Adeyemi