20/20 vision: Rising employment and health expenditure will bolster industry growth

Consistent premium price increases have led to moderate revenue growth for the Vision Insurance industry over the five years to 2017; however, costs have largely kept pace, to the detriment of industry profit margins. A range of trends has benefited industry revenue over the past five years, including the aging of the domestic population and regulatory changes. Moreover, existing operators have also benefited from prevailing higher barriers to entry, with economies of scale both buoying margins from increased compliance costs and tempering the entrance of new players. Over the five years to 2022, industry revenue is forecast to continue rising...purchase to read more.

Industry Statistics & Market Size
Revenue
$35bn
Annual Growth 12-17
3.0%
Forecast Growth 17-22
Profit
Employment
21,753
Businesses
1,489

Industry Threats & Opportunities

  • Existing operators have benefited from prevailing higher barriers to entry and the aging of the domestic population
  • The elderly population is anticipated to increase, benefiting demand
  • The insurance sector has strict capital requirements that are difficult for new entrants to meet
  • Industry Report - Industry Products Chapter

    The following is a breakdown of the total optical market by ultimate product and is sourced from The Vision Council. While industry operators do not manufacturer these products, they do provide for either a portion of or the total cost of their purchase.Lenses and framesCollectively, lenses and frames are anticipated to account for 50.9% of the total optical market. Despite the steady increase of contact use, particularly among younger demographics, traditional prescription glasses continue to dominate vision benefit expenses for industry operators. More specifically, while the vision correction population reached 198.0 million individuals in 2012, only 38.6 million individuals reported using contacts, according to the latest available data from Vision Watch...purchase to read more.

    Additional Insights for the Vision Insurance Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Vision Insurance Industry are

  • Having an extensive distribution/collection network
  • Having a good reputation
  • Must comply with government regulations
  • IBISWorld analysts also discuss how external factors such as Total health expenditure and Number of adults aged 50 and older in the Vision Insurance industry impact industry performance..

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    What's in this report

    What is the Vision Insurance Industry?

    This industry includes companies that provide coverage for routine eye exams and other procedures, as well as discounted pricing for eyeglasses and contact lens purchases. Vision insurance is often a rider policy linked to regular health insurance.

    Industry Products
  • Lenses
  • Frames
  • Exams
  • Contact lenses
  • Sunglasses
  • Refractive surgery
  • Readers
  • Industry Activities
  • Underwriting vision insurance policies
  • Managing care between a vision insurance provider and an individual recipient
  • Investment of vision insurance premiums
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total health expenditure
  • Number of adults aged 50 and older
  • Number of employees
  • Per capita disposable income

  • Current Performance
  • Distinction from health insurance
  • Eye care market description
  • Premiums and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Market landscape
  • Regulatory impact
  • Table: Vision Insurance Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Vision Insurance Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Custody, Asset & Securities Services
  • Optometrists
  • Portfolio Management

  • Products & Services
  • Lenses
  • Frames
  • Exams
  • Contact lenses
  • Refractive surgery
  • Sunglasses
  • Readers
  • Chart: Vision Insurance Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Employers
  • Government-sponsored plans
  • Individuals
  • Chart: Major Market Segmentation for the Vision Insurance Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitVision benefit expensesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Vision Insurance

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Vision Insurance Industry

  • Industry Globalization
    VSP Global, EyeMed/Luxottica, Davis Vision Inc.,
  • Table: VSP Global - financial performance
  • Table: EyeMed/Luxottica - financial performance
  • Table: Davis Vision Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Vision Insurance Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Vision Insurance Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Total Health Expenditure (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Deductible
  • A specified amount of money the insured party must pay before its insurance company will pay a claim.
  • Loss Ratio
  • Equal to incurred loss and loss adjustment expenses as a percentage of earned premiums.
  • Ophthalmologist
  • A physician that specializes in the study and treatment of defects and diseases of the eye.
  • Optician
  • A person who is trained to dispense prescriptions for eye correction.
  • Underwriting
  • The process where insurers assess the risks to insure and decide how much to charge for those risks.
  • What Our Customers Say

    Why buy this report?

    The Vision Insurance Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Vision Insurance:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Vision Insurance market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Vision Insurance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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