The growth of the population of seniors, particularly the baby boomer cohort, is set to become one of the defining issues of our time in the developed world. Some countries are faced with more challenging situations than others. In Canada, for example, the population of citizens 65 years or older is set to grow from 6.2 million in 2017 to over 10 million in 2037. Moreover, the age group 75 years and older will more than double over this timespan.
Birth rates have managed to keep up with the replacement rate in the United States. However, that does not mean that the country isn’t also wrestling with an eruption in the population of seniors. The Urban Institute recently projected that the number of Americans aged 65 and older will more than double over the next 40 years. That means the total senior population will reach 80 million by 2040.
The massive uptick in the population of seniors in the U.S. will have massive social, economic, and political ramifications. Older citizens will require more from the health care system in the decades ahead. That means that insurance companies will play a large role in guaranteeing service for these citizens.
Grand View Research recently valued the global health insurance market at $1.60 trillion in 2022. That same reported estimated that this market would deliver a compound annual growth rate (CAGR) of 6.08% from 2023 through to 2030.
UnitedHealth Group (NYSE:UNH) is a Minnesota-based diversified health care company. In the second quarter (Q2) of fiscal 2023, this company reported earnings from operations of $7.5 billion. Meanwhile, revenues increased 12% year-over-year to $80.9 billion.
