Hospital Daily Cash Benefit Insurance Market Report 2026

The hospital daily cash benefit insurance market size has grown rapidly in recent years. It will grow from $58.09 billion in 2025 to $65.39 billion in 2026 at a compound annual growth rate (CAGR) of 12.6%. The growth in the historic period can be attributed to rising healthcare out-of-pocket expenses, growth in hospital admission rates, increasing awareness of supplemental insurance benefits, expansion of private healthcare facilities, availability of standalone cash benefit plans.

The hospital daily cash benefit insurance market size is expected to see rapid growth in the next few years. It will grow to $108.95 billion in 2030 at a compound annual growth rate (CAGR) of 13.6%. The growth in the forecast period can be attributed to increasing demand for customized health riders, rising focus on financial protection during medical events, expansion of digital insurance platforms, growing penetration in emerging markets, increasing partnerships with healthcare providers. Major trends in the forecast period include increasing adoption of supplemental health coverage, rising demand for flexible cash benefit plans, growing focus on short-term hospitalization coverage, expansion of family-oriented insurance products, enhanced emphasis on digital policy enrollment.

The surge in hospitalization rates is anticipated to further propel the growth of the hospital daily cash benefits insurance market. Hospitalization involves admitting a patient to a healthcare facility for medical treatment, care, or observation. The heightened demand for healthcare services due to increased hospitalization rates creates opportunities for insurance providers to offer hospital daily cash benefit insurance policies, thereby expanding market reach. According to an October 2023 report by the Centers for Disease Control and Prevention, individuals aged 65 years and older accounted for 62.9% of all hospitalizations related to COVID-19 between January and August 2023. The hospitalization rates for adults aged 65 years and older more than doubled, increasing from 6.8 per 100,000 in the week ending on July 15 to 16.4 per 100,000 in the week ending on August 26, 2023. Hence, the heightened hospitalization rates drive the growth of the hospital daily cash benefits insurance market.

Leading companies in the hospital daily cash benefits insurance market are concentrating on launching cash plans that offer financial assistance to policyholders during hospitalization, aiding them in covering out-of-pocket expenses not usually addressed by standard health insurance policies. Cash plans are insurance products that provide policyholders with a fixed cash payout for each day of hospitalization, irrespective of the actual medical costs incurred. This plan is specifically designed to alleviate financial worries related to hospital stays and improve access to health insurance. For instance, in July 2024, Axa S.A., a France-based insurance company, introduced the CareForAll Hospital Cash Plan, which offers straightforward coverage for hospital admissions. Policyholders are eligible to receive $130 (HK$1,000) per day for inpatient stays, with a maximum coverage limit of 120 days each policy year. For international hospitalizations, this benefit is adjusted to $65 (HK$500) per day. The plan requires customers to respond to only three health questions regarding their conditions over the past two years, removing the need for medical examinations.

In August 2025, Arthur J. Gallagher & Co., a US-based insurance brokerage and risk management company, acquired AssuredPartners Inc. for an undisclosed amount. Through this acquisition, Arthur J. Gallagher & Co. seeks to broaden its presence in the US insurance brokerage market, improve client service offerings, and enhance its capabilities across specialty and commercial lines. AssuredPartners Inc. is a US-based insurance brokerage firm that focuses on delivering property & casualty, employee benefits, and risk management solutions to businesses and organizations nationwide.

Major companies operating in the hospital daily cash benefit insurance market are Cigna Corporation, CVS Health, Allianz SE, AXA, Assicurazioni Generali S.p.A., UnitedHealth Group Inc., Zurich Insurance Group Ltd., AIA Insurance Group, Aviva plc, Star Health Insurance, ICICI Lombard General Insurance Company Limited, HDFC ERGO General Insurance Company Limited, Bajaj Allianz General Insurance Company Limited, Reliance General Insurance Company Limited, Bharti AXA General Insurance Company Limited, China Life Insurance Company Limited, Ping An Insurance, Bupa, Aflac, Colonial Life, Manulife Financial, Sun Life Financial, MetLife, Allstate, Guardian Life Insurance Company of America, Sanlam Group, Old Mutual, Liberty Group, Britam Holding PLC.

North America was the largest region in the hospital daily cash benefit insurance market share in 2025. Asia-Pacific was the second largest market in global hospital daily cash benefit insurance market. The regions covered in the hospital daily cash benefit insurance market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the hospital daily cash benefit insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The hospital daily cash benefit insurance market consists of sales of hospital daily cash benefit insurance products by entities that are engaged in directly underwriting daily hospital cash plans that provide a lump sum amount in case of hospitalization and this amount can be used as per the liberty of the insured. The insurance industry is categorized on the basis of the business model of the firms present in the industry. Some insurance firms may offer other services financial or otherwise. Contributions and premiums are set on the basis of actuarial calculations of probable payouts based on risk factors from experience tables and expected investment returns on reserves. The value of the market is based on the premiums paid by the insured. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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