Small and medium sized insurers out-perform on premiums
Small and medium sized private health insurance funds have consistently out-performed the large funds in the 2014 premium rise round.
Premium rises come into effect on the 1st of April and Department of Health data demonstrates that the ten lowest premium rises for 2014 are attributable to insurers comprising just 10.94% of the industry market share.
The ten largest premium rises for 2014 are attributable to insurers comprising 65.24% of the industry.
hirmaa, Australia’s peak-body for member-owned and not-for-profit insurers has welcomed these figures with CEO Mr Matthew Koce pointing to the dynamic and competitive nature of small and medium sized insurers.
“These figures are evidence that small and medium sized insurers compete vigorously in the market. There’s often a misconception that these insurers are inefficient, in truth, they often out-perform the big players” said Mr Koce.
The premium rises for 2014 were announced late last year and the industry weighted average of 6.2% was met with some concern.
“The thing to remember with the industry-weighted figure, is that it is most heavily influenced by the larger funds, who have experienced the biggest premium rises” said Mr Koce.
“In reality, a significant number of small and medium sized funds have had premium increases well under the weighted average.”
“Unlike the larger for-profits, smaller member owned and not-for-profit health insurers reinvest their funds back into serving their policy holders.
I urge all Australians to have a look at these insurers to see if they can save on their premiums going forward.”
hirmaa is the peak industry body for seventeen private health insurers which are member-owned and not-for-profit. In all, the hirmaa funds provide private health insurance for approximately one million Australians.